I think part of the problem is that they had been running that Artifactory configuration previously without any problems, and it gave them a false sense of security.

Similar thing happened with the UK AISI - they got caught out because the environments they had used for previous generation models turned out to be completely inadequate for the new generation of Fable-class models: https://www.aisi.gov.uk/blog/incident-report-unsanctioned-ag...

"and it gave them a false sense of security."

This was part of evaluating cyber security of their frontier models and they had a "sandbox" which, and I'm not a security researcher, looks not adequate from the first look.