I wasn't around for the whole JTRS fiasco, but from what I heard this effect played out there as well. Ridiculous requirements such as requiring only software updates to support new waveforms and restrictions on SWaP as well as unrealistic network sizes resulted in radios so expensive they couldn't be widely deployed. I know some people like to point to SRW as a success coming out of that, but it never has been successfully deployed to within an order of magnitude of the number of radios in the requirements and resulted in a third, incompatible, radio system used by infantry. Meanwhile, a company that was excluded from the program built the radio that the military actually needed, which could communicate to both of their existing systems.
I was around for it's successor where they swapped software for FPGAs and made the same "software only" update requirement. The primary winner of the contract had no experience in digital logic and decided to implement the thing in MatLab (which provided no real mechanism for multiple clock domains or other features needed for high performance large scale digital design). Other contractors had to fit their design into this mess of a system. When it didn't fit in any FPGA, they opted to put it in an ASIC. And another of the contractors managed to convince the PM that their newest dev board was perfect for integrating this -- allowing them to pay for the internal R&D for that board on the project's expense (after all PCIE and SRIO are practically the same, right?).
I left at that point because failure was the only option and I could make more money writing code to meet silly requirements in the tech sector.