Have they even faced a challenging team yet? I don’t watch their games so idk

IMO they didn't. They won against Furia, MIBR, and EG, all of whom frankly should not even be playing at the tournament. These three teams can't really compete with any of the others present in the tournament.

And finally, while LOUD is a really good team, they aren't at their best at the moment. Since letting go of their coach and duelist, they have become a bit chaotic. But even more so, they apparently changed their in-game comp and game style and have been switching in-game leadership roles.

Basically, KRU will only have a real challenge when they play against Leviathan or when they advance from the playoffs and play against the teams that were present in the Alpha group.