That's when the old AMD we knew and love died. The new AMD overpromises and underdelivers several months late with caveats. They can do better but they won't. They have gotten complacent. Zen 3 was a huge leap for them and for x86 and they should have continued their winning streak and responded to Alder Lake with a death blow from Zen 4. Sadly, they were too busy trying to build up their V-cache CPU inventory.
EDIT: had some lingering text I forgot to remove
Unfortunately, Zen 4 (rather, any product using TSMC N5) wasn't going to be out anytime soon. It's not like AMD had Zen 4 ready in warehouses and could send them to retailers on whim. They have to wait until Apple moves off N5 before they could start fabricating N5 in high volume, and as you already know Apple has taken far long to move to smaller nodes because TSMC had trouble with N3. Furthermore, DDR5 wasn't ready and it arguably still isn't.
So what was available to AMD all this time? TSMC N7. That's about it. AMD ordered as much N7 as soon as it was available from TSMC. Unfortunately, the demand for current gen consoles, and pretty much all things semiconductors, shot up last year, which really limited how many N7 products AMD could sell to their core markets. Those wafers intended for console SOCs cannot be re-allocated towards the DIY market because AMD has a contract to uphold. I bet if AMD were given the option to renegotiate those contracts, they would because console revenue isn't a high-margin business. What wafers were left to the core markets (i.e. desktop CPUs, server CPUs, mobile CPUs, desktop GPUs, and mobile GPUs), they allocated towards the highest margin products first then to lower margin products. That means server products come first, then consumer products. They never had to drop the price of desktop Zen 3 because there simply was no need for them to do so. The demand was simply high enough to sell out most, if not all, of their Zen 3 products.