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Krishna reveals the cause of ignorance: Maya, the three gunas. 'Tribhir guṇa-mayair bhāvair ebhiḥ'—by the three gunas (goodness, passion, ignorance), 'sarvam idaṁ jagat mohitam'—the entire world is deluded. 'Nābhijānāti mām ebhyaḥ param avyayam'—does not know Me, who am beyond these modes and imperishable. This verse explains why most people don't recognize Krishna—they're deluded by the gunas. The gunas create illusion, making people see only the material surface and miss the spiritual reality. This connects to verse 7.12's teaching about the gunas and begins the section on delusion (7.13-7.19).
See how this wisdom applies to different life situations