Exposed Areas
You can see that this liner isn't attached to anything to hold it down or seal it to the wall, so it's not actually doing anything to prevent water from entering the crawlspace, and because the block walls are porous, they will also be letting water in.
Unwanted Mold
Because of the moisture and humidity in the crawlspace, mold has started to grow and it is now eating the organic material of the homes structure, in this case a supporting beam.
Fungus is no Fun
Fungus commonly grows on... animal waste. And having that under your home is not ideal, like mold, it is spread by the release of spores into the air your breathe.
Breathe Easy!
Now that the crawl space has been fully encapsulated it will prevent further mold, fungus, and animals will not be able to enter through any cracks or crevices!