Earlier quoted context omitted.
Actually, the hardware bug was in the VIC-20's 6522 VIA; the CIA 6526 shift register fixes the bug. The (chief) problem on the 64 was the VIC-II stealing processor cycles.
The CIA 6526 shift register on the C64 is not used . Because the trace on the pcb that connected to it was accidentally cut by the board partner, and Tramiel was unwilling to take the time needed for the rework. C64 uses the same very slow bit-banging method as VIC-20.
Re: For $595, you get what nobody else can give you for twice the price (1982) [pdf]
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