1. Memory safety issues not found in testing do not lurk as exploitable vulnerabilities; testing is never perfect, often far from it when it comes to edge/unexpected cases where vulnerabilities lurk (though fuzzing can help somewhat)
2. Sandboxing still needs some kind of isolation primitive, which CHERI can provide in place of the heavyweight MMU-based techniques that exist today
Plus let's not kid ourselves that all software is being tested with sanitisers. The vast majority of software running on your system probably is not.
Fuzzing helps but it's a probabilistic method with fallible search mechanisms, there's going to be cases left that an intelligent adversary can find by reasoning, a different/better fuzzer, better instrumentation, or alt techniques like symbolic execution etc.