Correction: Modern roller coasters do use clothoid (teardrop-shaped) loops, not circular ones. The premise of the question is inverted—clothoids are the industry standard precisely because circular loops are problematic.
In a perfect circle, curvature is constant. To complete the loop, the train must enter at very high speed. This creates extreme centripetal acceleration (g-forces) at the bottom—often 6g+—which can cause gray-out, injury, or structural stress. The onset of force is instantaneous (jerk), which is physiologically harsh.
A clothoid (Euler spiral) has linearly changing curvature: tight at the top, gentle at the bottom.
Werner Stengel, the legendary coaster engineer, pioneered clothoid loops on Revolution at Six Flags Magic Mountain (1976)—the first modern vertical looping coaster. Since then, virtually every vertical loop on major steel coasters worldwide is a clothoid (or a close approximation).
Circular loops are essentially extinct in modern coaster design, surviving only on some vintage rides or as a deliberate "retro" feature.