Sounds to me like there isn't good product-market fit, and the founders think that reaching some 99.99% level of perfection will magically make everything fall into place.
Actually no, the product has a very nice market, however we are in the fault detection field, and as with all these products you will always end up with some percentage of false positive / negatives. and neither devs nor management want to take the risk to just release with known 2-3% error rates