I think the issue at this point is that they've promised - i.e. taken money for - "full self driving" features that are supposed to be delivered using the car's

I think the issue at this point is that they've promised - i.e. taken money for - "full self driving" features that are supposed to be delivered using the car's hardware as-is. So they have to either work with the cameras they have, or retrofit a bunch of cars with LIDAR, or just fail I guess.