Without being inside the studio it’s hard to tell.
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Maybe some good ideas got denied.
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Maybe some good ideas had too many bugs and the game had to be ripped open.
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Maybe there was some significant studio issues (not impossible, COVID affected the entire industry for 2 years) and some ideas had to be cut due to scope.
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Maybe some key people were laid off before work could be complete (Microsoft has laid off thousands of people over the last 12 months).
We know for a fact that the game was delayed at least once, as it was initially slated for a Spring 2023 release before coming out in October.
That leads me to believe there were some critical issues during the latter half of development. That could go some way towards explaining why the game launched in such a buggy state, and why some features are barebones and others are absent.
This industry is too precarious and competitive for somebody to willingly release a bad game, so I choose to believe that the studio leads thought they were making something better than before, but misread their potential audience’s expectations. By the time that was clear (the day Builders Cup was revealed) it was already 2 years too late to do anything significant about it.
The fact that a “plan B” was released within days of the game launching leads me to believe there was a late band-aid contingency plan devised between reveal and launch, as there’s no way the studio could have decided to radically alter their headline progression system based on Day 1 impressions.
Fundamentally changing the progression system and economy of the game takes months of research, balancing and iteration, which is why we’re not seeing anything for it in Update 5 (and probably not Update 6 or 7 either).