Most of the arguments by dispensationalists against Covenant theology are made from a radical misunderstanding of CT. The claims are made with binary language such as "CT spiritualizes the OT." This is the common view by dispensationalists against CT and means that it empties the OT texts of their concrete referents. As though it never acknowledges that concrete promises were made to national Israel. Or prophecies were never applicable to national Israel.
In fact, CT affirms grammatical-historical meaning; OT promises are real, historical, and concrete; typology is retrospective, revealed by later Scripture, not imposed.
From Calvin: "We must not imagine that the promises were shadowy or illusory.”
Vos: OT realities are true at their level but oriented toward eschatological fulfillment.
The Dispensational critique collapses because it defines "literal" as a final form identical to initial form.
CT defines "literal" as historically real and divinely intended.
When that distinction is made CT does not spiritualize, it eschatologizes, that is, it treats earlier realities as real and meaningful in their time, but as pointing forward to a greater, final completion.
For the Dispensational critique to work "literal" must be redefined narrowly and rigidly.