Just the opposite, the company has been around for 10 years and they have are an intellectually oriented professional services provider. This is quite common. The VM they built may or may not be a direct demand from a customer, my bet is it was an idea that someone had and they decided to make it, to see if there was some customer buy-in. There might be a niche need.
The problem with the 'A Customer Can Run An Applet In A Browser' as a solution, is because this won't materially work for most wide, public style deployments - there will be any number of snafus, and for more 'internal' style IT deployments, there are just easier, more robust ways to deploy a Java app.
I have explained how 'Direct Buffers' are a problem to anyone who understands what VM and Direct Buffers used for (they are inherently about bridging to native memory), which obviously is not going to be accessed in WASM context.
Actually - WASM itself is a great analogy for what is going on here. It's 'perennially almost there' tech aka a neat idea that has limited value in the real world, it's been around for so long and there isn't that much activity, or at least not commensurate with what it's supposed to be able to do. By the time WASM catches up, the performance of JS in V8 gets so much better it becomes 'good enough' which obviates the need for WASM. And so on it goes.
Something may eventually come from JVM in WASM, but what we see is a very early experiment.