In a good organization, there will be several layers of people owning failures of different types. The low level manager can claim ownership of failure to sufficiently manage expectations, their manager can claim ownership of failure to prioritize properly, and a yet higher level leader can own failure to provide funding.

It's a responsibility of management to ensure that the work is understood and proper resources are negotiated for and allocated to perform it.

When a manager doesn't understand the scope of the work or has not made the case for adequate resources, to the project's jeopardy or their team's, it's typically referred to as mismanagement.

If this culture of under-serving itself for no apparent benefit except to appear too busy to be assigned more work extends elsewhere, it could be an organizational issue. If it's a SNAFU principle situation, management needs to be brought in alignment and trust with leadership, or leadership needs to be replaced. I've encountered both at the same place at the same time, and thankfully the board agreed.

Is it possible for the IC to be given insufficient resources by their PM? Such an insufficient pay or insufficient time or or? Whose fault is the failure then? My point is, we all work between lines and try to do our best, whether we are managers or ICs. A good manager will try to do their best just as you do, a bad one will throw all his troubles on your back, or blame you/the organization/moon phases for them.