You get me read the article. Here is the timeline according to the article:
1) Lufthansa said Airtag was banned:
"Hi David, Lufthansa is banning activated AirTags from luggage as they are classified as dangerous and need to be turned off./Mony"
2) Lufthansa clarified why it banned AirTag:
"According to ICAO guidelines, baggage trackers are subject to the dangerous goods regulations. Furthermore, due to their transmission function, the trackers must be deactivated during the flight if they are in checked baggage and cannot be used as a result. /Ana"
3) Lufthansa backtracked, implying that it was the government who was wrong and they only followed the rules:
"The German Aviation Authorities (Luftfahrtbundesamt) confirmed today, that they share our risk assessment, that tracking devices with very low battery and transmission power in checked luggage do not pose a safety risk. With that these devices are allowed on Lufthansa flights."
4) Lufthansa confirmed with NYT that AirTag was allowed after all.
All I can see is Lufthansa was wrong, double down, had to reverse the course with some vague excuses, and still haven't admitted they were wrong. What exactly is out of proportion? When they said they banned it without clear explanation, it inevitably opened the door to speculation, and lost luggage is an obvious explanation.
I have to question your bias against the media here. As for using "face plant", "awkwardly", don't you see the walking back earlier tweets, but not admitting error, as anything but awkward?