In theory - perhaps with a fully automated system. But seldom achievable in practice.
The tiniest problem, always seemed to lead to the entire thing breaking down. I honestly don't think I ever visited London once, without hearing the typical "service on the Circle Line has been suspended" announcements that had become a running national joke. And not an announcement I've heard since the extension to Hammersmith. Now that they've got the outer circle running on the Overground, they've very wisely kept two break points on both sides of London, and not attempted through-running.
Does anywhere in the world successfully run a long loop, with frequent (say every 4 minute) service? Might be fine for an infrequent service that only goes every 15 minutes or so.
The slowest and most cumbersome part of train’s journey is the part where it turns around at the end. This is the main limiting factor on frequency for many point-to-point lines. If the line is a circle, trains never need to turn around. Why do you think some metro systems used to build loops at the termini of lines, effectively turning a linear route into a one-way loop? (e.g City Hall Loop in NYC, Kennington Loop on the Northern Line, many lines in Paris)
The main issue with London’s Circle Line has very little to do with the fact that it was a circle, and more to do with the fact that it is interlined with the District, H&C, and Metropolitan lines, and both the District and Metropolitan lines having numerous branches. It’s a gigantic mess and undoubtedly and operational nightmare, especially considering that those lines are literally the oldest underground railway lines in the world and also used old signalling. So, if there’s a problem on any of those lines on any of those branches, the problem cascades through all the lines.
This part is just speculation, but I would also think that TfL would have tried to prioritize the other lines more than the Circle Line, since the other lines are far more important - the Circle Line is mostly just a duplication of other lines. So, when there is a problem, I would expect that they would try to make sure District Line or Metropolitan Line trains stayed more on time at the expense of delaying or suspending Circle line trains.
Finally, the extension to Hammersmith was to increase frequency and capacity to Hammersmith, since originally only the H&C served the section to Hammersmith and due to the interlining with the Circle and Met, the H&C can’t have super high frequencies. The increase in reliability probably comes from the elimination of the Circle Line through-running at Edgware, which eliminated some complexity in the complicated mess that are the London subsurface lines, as well as the implementation of new signalling along those lines.
As for examples, Wikipedia actually has an entire article listing them:
https://en.m.wikipedia.org/wiki/Circle_Line
Not all are true circles, but many of them in Asia and China in particular, as well as Moscow, are.