As I understand it the major issue is over the lack of a plausible mechanism. It's not enough to claim results, there needs to be a way of explaining those results. I have the impression the claimed results are marginal and unverifiable, which combined with lack of a mechanism leads to the current level of skepticism.
I haven't read up on this particular result, but I have read several other cold fusion papers, most recently the series by Andrea Rossi (which in my opinion are most likely fraud, not simply ignorance or honest error).
The problem is both lack of a claimed mechanism and negligently bad methodology. The results are usually not marginal: the excess energy claims are often 200% or more (although they are rarely too far beyond what could be explained by chemical reactions). They are just completely untrustworthy. Every time someone claims 'excess heat' from a system like this, they use very poor calorimetry, poor enough that their heat measurements are completely useless. Other scientists point this out, and they steadfastly ignore the point or claim that "calorimetry is hard, we need $$$ to do it differently, and besides this is only a minor point"
So the a common way for LENR researchers to measure excess heat is by steam generation. They have a vessel of water, they do their reaction, they see that steam is generated, and they see what mass of water is turned into steam in a given period of time. They then multiply by the heat of vaporization of water, and they get an energy. They divide that by the electrical input (current * voltate) to find the excess power.
This sounds great at the freshman physics level, but in practice it is really inaccurate. The problem is that the steam contains water mist. Because steam is so much less dense than water, if 10% of the mass turns into steam and 90% is in water droplets, it still looks like steam but the amount of energy will be wrong by nearly 90%. The proper way to measure heat output is to use a heat exchanger that recondenses the steam to water and measure the temperature rise of the coolant flowing through the heat exchanger. This is an added complication, but it is at the level of a 4 month bachelor student project or a long weekend for an experienced scientist/engineer with a well equipped laboratory. The cost and complexity to get a reliable number for the heat output that is accurate to a few % is simply not that much, but LENR/cold fusion community doesn't seem to want to do this -- the charitable explanation is that they are stupid and the cynical explanation is that they know it would kill their results. Generally their response to questions about calorimetry is something along the lines of recalibrating their multimeters or temeprature sensors -- completely missing the point.
A quick alternative to proper calorimetry that would demonstrate that their system is flawed is simply to do a proper control experiment. Run the current through their setup without their magic fusion catalyst and measure the heat output. In this case, the heat output should match the electrical input. If they still show excess energy, it is proof that their calorimetry is faulty. None of the papers I have read on the subject do this properly.
Believe me, if someone came out with substantial excess heat measurements using good methodology and in a reproducible way, most scientists would be skeptical but they would come around pretty quickly.
It is instructive to remember that the first report of cold fusion and the first report of high Tc superconductivity came out at nearly the same time. Both were considered to be "impossible" at the time according to what we understood of physics. High Tc superconductivity was quickly reproduced and became a major research area, while cold fusion was exposed as a fraud. It isn't like the scientific community is unable to accept new ideas.