I suppose that depends on your baseline for normal. I've never been involved in game development, but as a player my experience tells me it's relatively common for a game - especially one under constant ongoing development - to be a bit prone to bug/glitch whack-a-mole. One gets fixed, another crops up; that gets fixed, two more take its place (because apparently bugs are Hydra followers?).
We all see things through our own filters. For example, I'm very experienced at seeing things through a haze of rage and frustration, and problems always look far worse and often far more hopeless when filtered through that. I just have to try to adjust my perspective a little to compensate for it. I imagine even with a reasonably normal (there's that word again) level of emotional stability things can still look worse if they're affecting something you're already focused on for whatever reason. You and Northpin see it as things going "beyond wrong", where to me it just looks like game development working as usual. Not perfect; maybe not even adequate; but hardly a sign of impending collapse.