I'm not sure that the term 'biodegradable' has been used by Swaro, but regardless, it can simply mean that once disposed of, it will not leach toxic compounds into the environment. EVERYTHING degrades with enough time. The issue is whether you want certain compounds in the environment during manufacture, use, or disposal (degradation).
ALL companies are facing such issues and the history of industralized society if full of such examples. Lead (in pipes and ammunition for instance) and more recently PFAS come to mind as obvious examples. To think that Swaro would intentionally use a material which only lasts, say, five years, is sheer lunacy. For some reason, they changed formulation, and the results were less-than-ideal. They fecked up... My point is that it's something understandable given the parameters. What DOES deserve criticism, is how they have handled it since then. 100% transparency and warranty would nip all the bad press in the bud ;-)