So essentially a kid stole another kids ID. Because the (thieving) kid had gotten in trouble with the same ID before it was also a match in the database.
It does seem like a true failure but the headline makes it sound like this was an AI falsely accusing someone based on pure randomness. Even without the tech, the police would have had the name of the wrongly accused person because the security guard only had the fake/wrong ID and the person's ability to match faces was not great.