In my account they definitely failed.
As you say, they did a great job with the hardware but the only real software they are even advertising for it is a worse version of vrchat that they took way too long to clone.
I don’t know how to chock it up other than as a failure, they acquired instagram only 2 years earlier. Instagram is now a Snapchat tiktok and a little YouTube wrapped into one.
Did they fail? Most people don't hate Facebook as much as HN and seem not to have a problem with Oculus requiring a Facebook account, given that the Quest 2 is the best selling VR headset by far.