How and why concurrent edits of the state file should be avoided?

If there are two users or processes concurrently editing the state file it can result in invalid state file that doesn't actually represents the state of resources.

To avoid that, Terraform can apply state locking if the backend supports that. For example, AWS s3 supports state locking and consistency via DynamoDB. Often, if the backend supports it, Terraform will make use of state locking automatically so nothing is required from the user to activate it. Automation pipelines should wait for locks to clear instead of forcing unlocks.