Agreed, why deliver an app with an egregious bug you know about?

Because the Powers that Be insist on making a particular release date, consequences be damned.

I am currently in this situation.

Is it my imagination, or has people's ability to detect and understand sarcasm just fallen off a cliff over the past 1-2 years?

It's been longer than that. I would expect this is a sore point with people because few professions allow their practitioners to knowingly ship defective products to meet a deadline.

Alternatively, why understand sarcasm when the lack of understanding provides some folks with an amazing weapon?

It would appear so.