People having this issue should be refunded after sending the hardware back. That's the only good thing to do here. And when it gets fixed they can still decide to buy it, with some extra price reduction to make up for the snafu. IMHO that's the only correct way a vendor should deal with such situation.
Pretending nothing is wrong (officially) and taking the cash anyway is very disappointing from Individual, I concur. But seemingly a situation which is sadly still possible in the Amiga community...