Nah, it wasn't removed for technical reasons; Sony removed it because CDPR went behind their back and blanket-offered refunds. Which was the right thing for CDPR to do from a consumer-friendly perspective and from a PR perspective, but they should have communicated with Sony more first seeing as refunds on PlayStation go through Sony's store. I thought it was a bad look for Sony, though, personally.
That's not to excuse Cyberpunk 2077's performance on consoles in any way - they deserve flak for that.