If nothing else this puts into focus plenty of bureaucratic problems, but we wouldn't be here without the underlying buggy software that opened the door for bureaucracy to fail so badly.
Yes, because as the OP clearly stated, the problem wasn't the bugs.
The problem was the bugs were noticed, flagged, discussed, _and systemically ignored_.
Mistakes get made. And even if the original mistake was hugely egregious, it's usually not a huge problem if you actually deal with it well (barring things like medical errors, but even there, trying to cover up a mistake can cause more harm than the initial mistake, at least in some cases).
For these kind of institutional problems most of the time it's really the response to the mistake that turns a mistake in to a huge catastrofuck.