Translated to the standard startup-speak: they should have enough runway for two pivots.
Yes, because they will learn from the failures of the first, and make the second better. Then learn from the failures of the second-system-syndrome and make the third genuinely better.
Which is more likely to succeed, 1 attempt or 3 attempts?
We're talking about a small company here. Sometimes small companies don't have the resources to move forward with a 2nd product if the first one didn't pay off.