Usually appears in compounds rather than standalone: 荒谬 (huāngmiù, absurd), 谬论 (miùlùn, fallacy), 谬误 (miùwù, error). As a bound form, it adds a stronger tone of 'egregiously wrong' compared to neutral 错 (cuò, wrong).
register
Formal/literary register. In casual speech, people say 太离谱了 (tài lípǔ le, 'too outrageous') rather than using 谬.