Asking “What is wrong with software development?” is the same as asking “What is wrong with society itself?” They are the same question.
Software suffers the same problems as society itself. For software development to happen, software developers have to exist – not just pretend to exist. To contemporary society (as contrasted with modern society) , society no longer exists, and they don’t want it back.
Society is not just dysfunctional; it doesn’t exist.