In a nutshell

In 2016 ledger launched the ledger nano S. After its release in 2016 users were hesitant to use ledger because its firmware was closed source while all other HW wallets used open source firmware. Ledger calmed everyones nerves and ultimately got them to buy their product by stating its closed source firmware was not a vulnerability because "even a malicious firmware update could never extract a users seed".

We now know this was a lie which means ledgers success has been built on a lie this entire time. If early users of the ledger nano S had known it was possible that malicious or fraudulent firmware could easily extract their seed they likely never would have trusted ledgers closed source firmware to begin with.

Ledger told us its firmware wasnt a vulnerability, now that we know it is a vulnerability they claim its fine because "nothing has changed".

This is like someone accidently sending a text message revealing to their spouse they have been cheating, then saying its fine because they were cheating the entire time.

In a nutshell, everyone who was tricked into trusting ledgers closed source firmware no longer trusts their closed source firmware because they know it can extract peoples seeds, and its closed source architecture means we would never know. These people will not touch another ledger device until their firmware is open source as that is the only way to regain the trust that has been destroyed.