I disagree. I would be astounded if Waymo, Tesla, and every other player in the field isn't already trying to craft 1000 new test cases about this incident. It's now the second(?) known death involving this technology. The first question their bosses will be asking them in their next meeting would be "would our cars have done this, too?"

That’s where the ntsb steps in and regulations created.

I'm having a hard time imagining that kind of regulation of ML algorithms.

Making sharing of all sensor data of an accident and the preceding couple of minutes mandatory could be a simple regulation that would be very helpful for all companies trying to improve their algorithms.