This is not a feedback loop, nor is it representative of any kind of systemic failure. The geocoding API is an external dependency, and in implementing their integration of this dependency, the Chromium developers failed to respect the contract of the dependency, specifically to secure a sufficiently large quota, and this resulted in a bug.

This is amusing and all because it comes from the same company, but Google is a huge company, and it's unlikely that the Chromium team's relationship with the geolocation API team is that much different than any other enterprise customers'.