If you "ship" a feature that only works if it always works and it doesn't always work, does that really count?

I think you can still tick the "shipped" box even if you have bugs with subjective levels of severity. Otherwise, I'd never ship :/

Yes? Bugs make it to prod all the time.

In this case, I don't see it as a 'bug' though... I would see something like not playing music at all or playing the same unencumbered song on repeat as a bug.

Playing only a single song just long enough to earn a copyright strike means this feature doesn't exist. Instead, it's an implementation of a checkbox on a settings screen that enables some side effects that are not what the text next to the checkbox describes.

To be fair, usually bugs don't expose people to criminal liability.