Bond funds vs actual bonds/cds/treasuries

I see in managed portfolios and stock broker picks they include a lot of bond funds (municipal/treasuries etc) from fidelity/vanguard etc instead of buying an actual bond or cd (and holding it).

How is this better? Doesn’t the prices of these funds fluctuate like stocks making them almost like a normal stock?
Of the stock market goes down so will those funds, correct? What’s making them “safer”?

Or is my assumption incorrect?

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