This can happen in academia. I went through Stanford CS, finishing in 1985. That was about when it was clear that "expert systems" were not going to lead to Strong AI Real Soon Now, or, indeed, much of anywhere. But many faculty were in deep denial about that. The "AI Winter" followed. There was little progress until machine learning finally took off about two decades later.
I don't understand how people ever thought such things could become equivalent to human minds, but I don't think that's my insight, but that others' thinking was blinkered for some reason.