Exactly. I've seen this in military contracts where the rules are REALLY strict (and ancient).

Everyone on the project knows at one point that the resulting product will be outdated and useless, but neither side can call it quits. The one making the product needs to finish or they won't get paid, the one ordering said product can't cancel the project or they'll get sanctions according to the contract.

So they just go through the motions and produce something that'll never get used and is put straight into the bin.