Sadly, this 2.1 error has been around for years, but it has gotten progressively worse, agreed.
Unfortunately that means LM redemtions have become a bit of a gamble these days in my view which is why I'm not topping up the measley ~6k mls I have any longer.
For anyone who did their homework and checked availability via other programs/ tools as well as via LM, but still is stuck, my only recommendation is persistence (as silly as that may sound) combined with a high degree of flexibility with regards to carriers, routes and dates.
I know first hand how frustrating it can be, it took me over a year to finally be able to redeem my last 156k mls for two one-way SE Asia - Europe // Europe - SE Asia Biz itineraries when the "stars aligned" and availability and bookability finally worked.
Whoever thinks they'll be able to get LM to give them their money back has a serious uphill battle on their hands and I'd reckon chances of getting a Columbian company to return funds they collected are super slim and routes like CC charge backs or so will stand on "thin ice" as LM never promised what can be redeemed with those miles.
Better (IMHO) to invest that time into finding something actually bookable that helps recover money spend on the miles. Usually (as
pogonation noted in the TG bookings via LM thread), if the flights show via Smart Search (yes, the moniker is debateable, but that's not the point) then the chances of the flights being actually bookable increases. If they come up only via carrier search, the chances of them being actually bookable can vary greatly and often may not work. I share the same experience. YMMV.