The Cloud Native Computing Foundation (CNCF) and its projects, including Kubernetes, prefer using Netlify for cloud hosting and deployment due to streamlined collaboration through automatic deploy previews, stronger tooling through seamless integration with GitHub, and decreased complexity through unparalleled CI/CD. As an open-source project, Kubernetes benefits from these features as it focuses on reliability and managing a massive number of contributors. Netlify's revolutionized CI/CD process and automatic deploy previews enable efficient collaboration and problem resolution within the same ecosystem.