https://www.doa.la.gov/opb/pub/FY19/FY1 ... Budget.pdf
Check out the governor's message in the LA budget: 1 billion in temporary revenue rolling off the books, according to the governor - a "fiscal cliff", he calls it. Page 1 of the budget shows that the state is not in good fiscal health. I really doubt that they are dishing out tax credits like you think they are, because the amount of tax revenue generated from whatever employment inXile created is not likely to balance out those credits, even over quite a long period of time.
Subsidies may make the break-even point for profitability lower, but they don't change how effectively the money was spent. The point remains that the ratio of the game's peak users versus its budget does not look good. Achieving profitability sooner, due to subsidization, is nothing to be proud of - it's a bit like saying "hey everyone, I'm on welfare; look at the new Porsche I just bought!". Making a well-received game is actually something to be proud of.
Not solely. As has been pointed out numerous times, they didn't listen to much feedback on how to improve what they actually made either, they've had key distribution woes, they've had communication problems with regards to the various rewards bundles and how they would be distributed, and they've had significant bugs and technical shortcomings. There are whole slew of things contributing to a bad experience around this game. And they are all things from which lessons can be drawn. As to how much weight its difference from the originals carries, I don't know. You say that is not much, but I haven't seen you present any numbers to prove it, any more than I have seen you present any numbers to show much government money the company has received. You are working from speculation, not facts.