We can discount my potential conjecture.
The actual log is now out. Other people looked at that phone before presentation and after second incorrect face it required passcode. When Craig picked it up, it required him to enter passcode. It worked perfectly. Craig became flustered and instead of entering passcode he got flustered, said ho, ho, ho, and went to back up phone, which also worked correctly.
There was no fail of the phone or face ID. Just a demonstration of how human can get flustered and make things appear as a fail.
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Flop sweat, he was nervous.
These people are NOT professional presenters. Most nerds do not think fast on their feet. Regardless how rich they get.