When they reach that unusability limit, most people will call their IT department and have the offending buggy software reinstalled as a fix. IT won’t remove your buggy copy of Microsoft Word and Teams and replace it with WordPerfect and Slack.
It's had competitors forever. The lockin is from UI, file formats, compatibility generally (e.g. functions), scripting / existing infra around it, and its utter dominance in the market ("nobody got fired for buying Microsoft")
I should have said "people and organizations" because that's what I meant.
The mechanism with organizations works like you said yes. They'll just develop processes to work around the bugs until it becomes completely impossible.