I think you are right. The application seems to be failed.
ACI submitted the STIP on the day of the application deadline, and the quality of this STIP was also very poor, with many mistakes. For example, it mistakenly stated that the incentive period was 12 months, which received criticism from the Arbitrum community. What’s even more frustrating is that ACI did not make adjustments in a timely manner based on the suggested changes, resulting in missing the application deadline. This could make Aave missed hundreds of thousands or even millions of ARB grants. In contrast, Radiant made thorough preparations for the application：
https://forum.arbitrum.foundation/t/radiant-final-stip-round-1/16929
That is so sad.
It is not up to the standards of Aave, and the question remains as to who should be held responsible for the potential loss of millions in grants？
Should we simply brush it aside as if nothing has happened?