Not what you asked, but stories like this are why competition is critical to the economy. All large human systems, government, academia, business, whatever, converge to this. Everybody's comfortable, nobody's working too hard, sure, we'll get to it in a couple months...maybe. The paychecks will keep on coming, we can all go home at 5, everything's great. Then, all of a sudden, some small startup "cuts corners", doesn…
I'd quibble with your word choice and replace "and somehow..." with "because of this". It's apparent to me that you can work faster and do it cheaper when you're cutting corners, which is where some of the value in startups lie (in addition to the actual innovation).
Acquiring companies do a lot of heavy lifting to ensure compliance in all their markets. As a startup, front end devs could push out a feature in half a day; bur that was in (American) English only, with no review of the copy by Legal, and didn't comply with EU accessibility standards on minimum contrast ratio, nor did they check to see of it works with screen readers. Each of these things could cause legal/regulatory/reputation problems for large companies, but all the former-startup engineer sees is bureaucracy - because they are now working at a scale they are not familiar with.
A startup may ignore colorblind users, with no consequences, but the DMV should not. For large societal problems, MVPs do not cut it.