The messaging around what is and isn't allowed with the various Claude plans has been so very muddled as of late. Add to that declining model performance, changes to default reasoning efforts, expanded token usage, caching bugs, corporate denials and gaslighting -- I don't think it's overstating matters to say they've suffered some major self-inflected reputational damage.
As it stands now, there is so much FUD surrounding their offerings, I'm not sure what they could do in the short term to turn things around.