I think it was more the fact that Spaces was spun off of Periscope, a non-Twitter product that Twitter purchased and slapped on whole (not true, bottom-up integration). It was never intended to handle Twitter levels of traffic, definitely not post-Musk levels of traffic. And part of Musk's cleaning house was drastically reducing all staff, including the people who manage, update, and fix this kind of thing.

Everything is still pointing to Musk as a useful idiot and little more. He had to be forced into buying Twitter, and has mostly used it to make jokes and have some fun. When he gets bored of being a darling to a certain subset of people, he'll change things up to keep himself entertained.