The fact that the infrastructure of the world is build on the backs of people who literally cannot make a living wage is a major failure of late-stage capitalism.
What makes you think capitalism is in "late-stage"? And what makes you think that free labor, voluntarily given, has anything to do with capitalism? And if it does, how could the astounding amount of value provided by the open source community be considered a failure?
A lot of people who e.g contribute to Linux are working in big tech