But I think that quote is usually invoked by people when they blatantly disregard the wishes of their customers.
It's just a way to justify "screw the users, they have no idea what they want, I know what they want, because I'm a genius like Henry Ford, and my users are stupid."
I heard that Steve Jobs was fond if saying that. And sure, Steve Jobs had a lot of success, but people don't remember his failures as much. Steve Jobs was responsible for the Apple III, a fiasco for Apple computers because Jobs insisted on not having fans in it.
He was adamant that the era of fans in computers was over, and the Apple III was a disaster that kept overheating. I am sure that when engineers tried talking Jobs into reconsidering, they just gave them that Henry Ford platitude and dismissed them.
I have heard so many times disastrously unpopular UX redesigns and dark patterns were justified with pigheaded platitudes about how stupid users are.
So regardless of what Henry Ford himself actually meant at the time, the perception today is that it was justification for disregarding customers.