"bugs" is a catch all word, it covers everything from a pesky typo in UI to bugs like this, severe security issues, meltdown/spectre, VW bugs, and so and so forth.
Of course no jail time for a typo, but why not a jail time or severe financial and career consequences for severe bugs especially when it can be shown that a bug was caused due to intentional decisions, malicious intents, sloppy testing, rushed product etc. and not due to genuine mistakes - similar to medical malpractices.
Of course lawyers will love it, but it can improve the overall situation.
And yes, I'm a software engineers and do know what I'm talking about.