I think B is just a symptom of the complete failure of (many) business people to understand what ML is or what it is good at. It starts with people equating "AI" with something they've seen in a movie and working backwards, and like you say, ends with just a really bad way of interacting with a menu system. This is going to persist until either we invent AGI or AI stops being a buzzword used by business people who have no idea what the technology actually does to make up use cases.