First, the organization expects “Twice the work in half the time” and does not get it. It may get some benefit, but not what was “promised”.
To some degree, I think smaller for #1 and larger for #2, “Agile” can fail to meet needs.
I emphasize /seemed/, because so many of those past “fads” were, like “Agile”, good ideas poorly implemented.
Since the need for improvement is largely (80/20?) localized to “development”, this just might be possible.
But I’d far prefer the second to no path at all. I think the fate of RealAgile™️ depends on change.