Google has good engineers and a long history of high throughput computing. This, combined with a lack of understanding what ML research is like (versus deployment), led to the original TF1 API. Also, the fact that google has good engineers working in a big bureaucracy probably hid a lot of the design problems as well.
TF2 was a total failure, in that TF1 can do a few things really well when you get the hang of it, but TF2 was just a strictly inferior version of pytorch, further plagued by confusion due to TF1. In alternate history, if Google pivoted in to JAX much earlier and more aggressively, they could still be in the game. I speak as someone who has at some point knew all the intricacies and differences between TF1 and TF2.