Wave function collapse
New to topics? Read the documentation here!
The idea the the wave function of a small observed system collapses "obviously" cannot be the full physical truth, only a very useful approximation of reality.
Because then are are hard pressed to determine the boundary between what collapses and what doesn't, and there isn't such a boundary, as everything is interacting, including the observer.
The many-worlds interpretation is an elegant explanation for this. Though it does feel a bit sad and superfluous.