No, there was not a hardware design error, but a very stupid bug in the Apple firmware.
There was some user who reported on reddit the exact error made by Apple.
The Intel processors have a MSR (model-specific register) which must be intialized by the BIOS/EFI with the power limit for the processor. Due to some program bug, Apple initialized the"MSR_PLATFORM_POWER_LIMIT" register with the values correct for a desktop processor (with 95 W TDP) instead of the values correct for a laptop processor (with 45 W TDP).
As the reddit user verified, with values even slightly larger than the correct laptop values recommended by Intel, all works OK.
The Apple press release contains some mumbo-jumbo nonsense language like all such press releases.
In fact their updated firmware just replaces the wrong desktop value for that MSR with the correct laptop value.