Imho, the main error is that they gave away the money unconditionally. The fact that the particular government didn't foresee this outcome is quite astonishing.
Yes an error, but as always there is some nuance.
If I give your company a 10mm check, or 10mm in payroll tax relief, it's the same to your bottom line. The latter goes a long way to making sure it's applied to keeping people employed if that's your actual goal (which may or may not be your stated goal).
They 100% saw this coming which is why they killed oversight. Best way to get Congress to pass a free giveaway is to get them in on the fun.
Charitable of you to think that this isn't by design.