Believe it or not, I find it more plausible that the entire team collectively lost their minds — or more specifically, the leadership. There's a long and sordid history of such things that goes back well before GenAI.
I can sort of get how leadership has been losing its mind with all the ridiculous product launches and renames and force-installed apps and browser extension-installing malware, but that doesn't explain the countless instances of hardware bricks, critical errors like failing to recognize the C: drive, and other really weird and suspicious things that I can't imagine would've been driven by leadership. Maybe leadership is demanding everyone be super reckless? But why would anyone with experience even touch those areas of the operating system enough to break them that badly?? The mistakes they're making really do not seem like mistakes that would be made by even the most rushed possible senior engineers. Maybe they're letting completely inexperienced people touch super low levels and that's the problem? Or completely inexperienced machines...
I suspect their experienced senior engineers that actually knew the products have left, and they cannot attract talent like they once did.