I convinced them that if they wanted to treat uncovered lines of code as tech debt, they needed to add an epic stories to their backlog to write tests. And their artificially setting some high target coverage threshold will produce garbage because developers will write do-nothing tests in order to get their work done and not trip the alarms. I argued that failing the builds on code coverage would be unfair because the tech debt created by past developers would unfairly hinder random current-day devs getting their work done.
Instead, I recommended they pick their current coverage percentage (it was < 10% at the time) and set the threshold to that simply to prevent backsliding as new code was added. Then, as their backlogged, legit tests were implemented, ratchet up the coverage threshold to the new high water mark. This meant all new code would get tests written for them.
And, instead of failing builds, I recommended email blasts to the whole team to indicate there was some recent backsliding in the testing regime and the codebase had grown without accompanying tests. It was not a huge shame event, but good a motivator to the team to keep up the quality. SonarQube was great for long-term tracking of coverage stats.
Finally, I argued the coverage tool needed to have very liberal "ignore" rules that were agreed to by all members of the team (including managers). Anything that did not represent testable logic written by the team: generated code, configurations, tests themselves, should not count against their code coverage percentages.