Looking at this closely, it was working, however it was noisy. I speculate that they didn't correctly anticipate the moon dust problem. Laser rangefinders may not be a workable solution for future landings.
So engineers at Intuitive Machines had checked, and re-checked, the laser-based altimeters on Athena. When the lander got down within about 30 km of the lunar surface, they tested the rangefinders again. Worryingly, there was some noise in the readings as the laser bounced off the Moon. However, the engineers had reason to believe that, maybe, the readings would improve as the spacecraft got nearer to the surface.