The simplest reason the indictment failed is that a felony charge amounts to overcharging in this case. Go one layer deeper and you find that cops and prosecutors assume the public likes a "tough on crime" approach, even when a lot of the public think Flock has bought off their local officials to pay Flock to run obnoxious surveillance tools with tax money.
Public attitudes may be changing. At least for Federal cases, it is quite rare for a grand jury to return a "no bill" or refuse to indict. Presumably, because federal prosecutors normally have their ducks in a row and present a strong case, or if they don't have a strong case, they don't waste time even bringing it to a grand jury.
However, per Wikipedia, "Beginning in late 2025, legal observers documented a marked increase in no-bill decisions in federal cases, particularly in matters arising from protest-related activity."
https://en.wikipedia.org/wiki/Grand_jury#cite_note-37