Isn't the actual mistake here to _at all_ fall back to some other RNG, which (at least in this case) is known to rely on less entropy than the main RNG? I mean .. shouldn't the hardware wallet instead just print a message like "RNG failed .. no seed generation possible .. please update firmware."?

Got any textual evidence for this? Quick prompt to an AI doesn't render much (if any) supporting content.

Bet that this chat can't be reproduced.