There was something unsatisfactory to V1 users in the V2 system. Depth was jittery or whatever it had been.

V1 was based on an Israeli structured light tech that later became Apple TrueDepth, a static dot pattern taken with a camera which deviations becomes depth. V2 was technically an early and alternative implementation of Time-of-Flight LIDAR based on a light phase delaying device, that output deviations from set known distance as pictures or something along that.

There wouldn't have been lacking app support issues if V2 did work. There was/were something that made users be "yeah... by the way" about it.