Strategically, they were caught with their pants down when the US demonstrated they were serious about going to the Moon. The soviet space program was great at

Strategically, they were caught with their pants down when the US demonstrated they were serious about going to the Moon. The soviet space program was great at sending cosmonauts to LEO, but they had no ability, and no desire to spend the time and effort to develop the ability, to go to the Moon. They planned and expensed the N1 as if it was another LEO Soyuz variant.