This is not common by any stretch. I have never seen a residential home with automatic sprinklers, only commercial real estate and apartments. The cost is prohibitive, and in many climates (where freezing is a norm) would be useless in garages.
The cost is absolutely not prohibitive, it's about $1-2/sq ft in a new home or $5-6/sq ft if you're retrofitting an old home[1]. For a new 2000 sq ft house that would be around $4000 dollars. Probably <1% of the overall house value given recent housing prices.
This would depend on house prices. Where I live, you can buy a 2000 sq ft house for $300K or less. That's 1.3% increase in price to add sprinklers, and I would wager that 99% of homeowners would prefer not to spend $4K on this.
Massachusetts only requires them in townhomes and houses over 14K square feet. In other words mansions. NY only requires them in three story buildings, otherwise it's up to the buyer. So these are nonsense arguments. Considering how many existing houses are exempt from all of this, I would estimate that less than 10% of the homes in CA have them, and less than 2% in these other four states.
A sprinkler system running on regular water supply pressure is not going to put out a lithium ion fire.