They knew, just hid it and hoped nothing catastrophic would happen. There were some reports early on years ago people had lost coins. The whole thing gives sbf vibes.

Im not on the bip110 camp (but honestly who TF knows at this point)... But @Matthew Kratter pointed out something interesting. The possibility of the firmware bricking devices being the intent... They mentioned that the firmware won't fix the issue... So it's not a stretch to assume other intentions. Idk if bricking prevents you from retrieving the manufacturer UID but someone asked this question over on X @Uncle Ted ⚡️

They were bricking themselves before the update aswell.