I don’t see anything that points to it being a general public cloud issue. And instead they talk about Azure software specifically as something that they couldn’t take advantage of, no?
I would not assume that it is a specific Azure problem from that statement. Many, many teams struggle to take advantage of cloud infrastructure because of habits and knowledge retained for operating the existing systems.
It’s possible given what they have, I t’s simply best to keep it on premise - at least to some degree. That would likely not be true with a successful re-architecture, but not everyone is up for that.
It may not be about the teams. For example, when you control the data center you can do certain things around performance and scale you can't do in a public cloud.
There are so many unknowns about how things are setup that it's hard to know.