Most of the web3 applications work with smart contract wallets, but unfortunately a big portion of those which require signatures signing do not validate smart contract signatures (EIP 1271) correctly.
This is a problem that the team behind each application has to resolve in it's own codebase. If it's not and the support for smart contract signature isn't implemented in the application, it will affect the usage of that application with multiple wallets such as Ambire Wallet, Argent, Gnosis Safe, Sequence and others.
If you encounter such an application, we recommend that you contact them and send a link to this article, where the issue is described in more details: https://help.ambire.com/hc/en-us/articles/4415496135698