No, the S1/S2 cutoff was to deal with running into limitations of the older speakers, which (because of when they were released) has vastly smaller quantities of RAM and storage, and less capable processors. They wanted to add features (like Dolby Atmos) and couldn't support them across the whole range (not just that the old speakers couldn't handle Atmos - that is to be expected - but adding all the new stuff to the firmware bundle exceeded the capacities of the older hardware). They handled that atrociously on the first pass, but then cleaned up their act eventually. You'd think they would have learned from that.
The current debacle comes from hubris and greed at the board / management level. They needed to fix their technical debt with a new software stack, they had a new set of headphones coming out, and they wanted to be able to say, "our new headphones are running on our new app and everything is dandy", and they plowed ahead and released a broken, incomplete, unfinished app. I'm guessing someone got a big "shipped on time" bonus for that.
They could have, instead, swallowed their pride and released the new app as a separate "Sonos Headphone" app, inflicted only on headphone purchasers and kept it that way, working furiously on the new app until it was stable and feature complete, and then rolled the new app out to everyone else. But they chose to "meet" their deadline with complete crap, and inflict it on everyone (tens of thousands of very loyal customers who have purchased many thousands of dollars of Sonos equipment each, and who previously were like an unpaid fleet of Sonos ambassadors, cheerfully recommending Sonos systems to friends / acquaintances), and then they spent weeks/months denying that there was any problem. And now a metric ton of goodwill has gone down the drain, all so that they could check a "shipped on time" box to make the shareholders happy. Hope they're super happy now.
If I understand correctly, the current Sonos CEO was Blackberry's last CEO. So he has a proven track record of... something.