Earlier quoted context omitted.
Does this mean FIPS-enabled software never runs as such in production (or at all) in environments where it is supposedly mandated?
I don't understand the question. We created software and we wanted it to be secure (by ourselves). When it came to FIPS compliance, we had to pay for certification, but we were already compliant anyway, so it was only procedure. It's definitely not as strict as the latest developments in crypto would demand, but it does cover the product in its entirety. Like, oh, you have encryption, but you have a backdoor here: no…
If you're already compliant (implying you are using FIPS compliant crypto in all situations), the matter is tautological.