This is certainly an extreme example, but I can't tell you how many bugs I've seen closed as "Works As Intended" where it may have been what the spec intended but certainly wasn't what the user expected is...well, it's way larger than it should be.
I've seen both engineers and product managers use this as a crutch. And, frankly, as a PM I can say the blame generally lies with the product manager. This is our job. It is to understand how this technology will be put in practice by users and to make sure we are properly distilling and prioritizing the needs of those users into requirements for the engineers.