How can the design of the Event Loop and Non-Blocking I/O lead to potential pitfalls in application behavior, such as callback hell or race conditions?

The design of the Event Loop and Non-Blocking I/O in Node.js can lead to challenges in application development. Callback hell can occur when developers create deeply nested asynchronous callbacks, making code hard to read and maintain. Race conditions can arise when multiple asynchronous operations access shared resources without proper synchronization, potentially leading to unexpected behavior. Understanding these pitfalls is crucial for writing efficient Node.js applications.