Seems like a project killer to me
If their grasp of basic principles is so flawed that they allowed this to happen, then what chance their software is any better? Worse, this is the second time it happened, so they don't even learn from past mistakes.
This is the sort of thing that makes me look at the bargepole with a condom on and think "Nah, not long enough." Yeah, the project itself might be far better, but I see no reason to take the risk.