management didn't understand basic automata theory
Do tell more about it; as I feel that's not why they wasted millions.That company tried to translate code from one programming language to another using only regular expressions. (This was a long time ago when you couldn't almost count on most "regular expression" implementations being Turing Complete.)
Perhaps the problem was really that engineers who understood the futility of the approach didn't speak up or weren't listened to. Still, I'd expect people managing an engineering firm that builds bridges to have some basic grasp of physics. So I don't think it's going too far to have those running a software company to have some basic grasp of the basic laws governing their field.