.. which is an instant red flag.
They could have talked about e.g. Google's many chat apps or tendency to shut down products, or Facebook's abandoned "metaverse" project, as indicators that the company has switched from providing new ways to win revenue and serve users to new ways to spend revenue on conspicuous consumption.
Instead they rant about "diversity".
To expand on the author's metaphor, the problem with the Wild West is that some of the "building" was in fact theft, murder, and genocide; and the problem with Versailles was the incredible conspicuous consumption while failing to address the problems and starvation outside the magic castle walls, leading to an uprising of the public and middle-elites which got the entire aristocracy murdered.
The unsympathetic reaction to the SVB crisis is a hint to SV that some of the proletariat might be massing outside the walls. Their approach to "diversity", "ESG", and other social issues is the beginning of a glimmer of recognition that they have a responsibility to broader society, but combined with a very poor ability to actually listen to people they consider not as smart.