common choice because we can efficiently compute products in this ring using the Number Theoretic Transform (NTT)
note that this is only true for special moduli $q\equiv 1\bmod 2n$. Lattice crypto is often defined over this ring without this special moduli though (the cryptosystem "SABER" uses $q = 2^k$ for some $k$ for fast modular reduction, and initially wasn't able to use NTT-type multiplication at all. You can get NTT multiplication for Saber now though, using things like this). Dually, one can get fast NTT-type multiplication in other rings as well, see this.
To see the issue with $\mathbb{Z}[x] / (x^n-1)$, it is worth mentioning that when $n\equiv 0\bmod 2$ is even, that
$$\mathbb{Z}[x] / (x^n-1)\cong \mathbb{Z}[x] / (x^{n/2}-1)\times \mathbb{Z}[x] / (x^{n/2}+1).$$
This is a polynomial version of the chinese remainder theorem.
One can break an $n$ dimensional ring into two "independent" $(n/2)$ dimensional rings.
Breaking the version of LWE on one of these $n/2$ dimensional rings would break LWE on the full ring.
Of course, if $n\equiv 0\bmod 4$, one can iterate this process, and write $\mathbb{Z}[x] / (x^{n/2}-1) = \mathbb{Z}[x] / (x^{n/4}-1)\times\mathbb{Z}[x] / (x^{n/4}+1)$, i.e. reduce breaking degree $n$ RLWE to breaking degree $n/4$ RLWE (and potentially further iterate it).
This is really how you should view $\mathbb{Z}[x] / (x^{n}+1)$.
It is the largest-degree factor of $x^{2n}-1$, so implicitly we want to be working in $x^n-1$, but the low-degree factors of this cause issues, so we remove them.
To explicitly demonstrate these issues, let $(a(x), a(x)s(x) + e(x))$ be an RLWE sample, where arithmetic is implicitly in $\mathbb{Z}[x] / (x^n-1)$.
As $f(x) := x^n-1$ has $f(1) = 1$, we have that $\frac{x^n-1}{x-1}$ is an integer polynomial.
We can then factor
$$\mathbb{Z}[x]/(x^n-1) := \mathbb{Z}[x] / (x-1) \times \mathbb{Z}[x] / \left(\frac{x^n-1}{x-1}\right)$$
Evaluation at $1$ projects $a(x) \in \mathbb{Z}[x]/(x^n-1)$ onto its first component in $\mathbb{Z}[x] / (x-1)$.
When working modulo $q$, this is simply $\mathbb{F}_q$.
Explicitly, taking an RLWE sample $(a(x), a(x)s(x) + e(x))$ and evaluating it at 1 yields $(a(1), a(1)s(1) + e(1))\in\mathbb{F}_q^2$, i.e. a 1-dimensional LWE sample.
This is a large reduction in the security of the underlying problem (one would typically expect degree $n$ RLWE to reduce to dimension $n$ LWE).
This phenonoma leads to direct attacks on cryptosystems, roughly because they are secure assuming degree $n$ RLWE is hard, but the above shows that degree $n$ RLWE reduces to dimension $1$ LWE, which is (typically) easy.
The underlying issue was that $x^n-1$ factors into the product of lower-degree polynomials.
This is morally similar to how things like Pollard rho (for factoring) mean we want to choose numbers $N$ without small prime factors.
So you want to choose an irreducible polynomial, like $x^{n/2}+1$ instead.
There are many other caveats for how one particularly chooses the polynomial --- most authors just ignore these, and use $x^{n/2}+1$ as a "safe" choice.
If you're interested in these caveats, the word to search on is "Polynomial LWE". Starting in ~2014 there were some works that noticed polynomial LWE can be unexpectedly weak depending on the choice of polynomial, so I would only look into papers that are after this time period.
Explicitly though, it is not enough to choose $f(x)$ that is irreducible and of large degree. Again, read the literature on PLWE for more details.
In practice, one should almost always do one of the following
- use (algebraically unstructured) LWE or LWR, of appropriate parameters
- use power-of-two-cyclotomic (i.e. $\mathbb{Z}[x] / (x^n+1)$ for $n= 2^k$) MLWE / MLWR of module rank $\geq 2$
- use middle-product LWE (it's hard to write down precisely what ring one works over --- you define a "funny product" that multiplies $a(x)b(x)$ over $\mathbb{Z}[x]$, then extracts the "middle coefficients" of this polynomial as a new polynomial).
There are some niche cases to use other rings, but you should really know what you're doing if you want to deviate from any of the above choices.