I'm shocked that anyone here is confused as to why this is controversial, to use a popular twitter phrase they were completely "mask off" on what they intended their tech to be used for. The demo was for a garment manufacturing sweatshop in which they identified a slow employee, called him by a number, and humiliated him, stopping just short of recommending a "corrective action".
This easily could have been spun in a positive light, imagine a commercial where they use their technology to discover that an employee was using a broken machine or that there was a bottleneck farther up the assembly line that could improve rates! But no, it was a cold look into how sweatshop operators view their workers.