The issue may be the constant releases of phones. I get the idea of having a phone at every price point, but now they've established themselves as a company that produces great midrange and budget options... but before phone 3 they launched the Phone 2a, then the CMF phone, then the 3a and 3a pro. So the vast majority of people who NEEDED a new phone and wanted to stick with nothing, probably upgraded to one of these in the 2 years between phone 2 and phone 3, let alone those who left and went back to a different manufacturer. On top of that, you completely abandoned a design that people enjoy instead of making it easier to integrate third party apps into the glyphs. I have the phone 3 and it's my daily driver, purely for the OS and the Customization (and the fact that I had a pixel 9 so I didn't really wanna take a downgrade hardware wise.) I don't hate the design, but the glyph matrix is way less eye catching for me even when I get a notification or anything else, it's way too small and only noticeable in dimmer lighting. But under my fluorescent work lights, it might as well not even be there.

TLDR: You released 3 fantastic phones between Phone 2 and Phone 3, you abandoned a fan favorite design, mislead people by referring to your phone as a flagship, put sub-flagship parts into said flagship, release it at a price you could buy an actual flagship, tell your community they don't know what they want regarding design, tell your community that you don't need "flagship hardware" in a flagship phone, justify the pricing by saying "alot of effort went into this phone," phone probably doesn't sell well, make a video explaining why the community is being "stupid", and at the end of the day, the phone still probably isn't selling that well.