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That's the story SpaceX has been reporting the whole time, so it's good to see that confirmed.

"The device, purchased from a subcontractor, was significantly modified and then successfully tested three times on the ground by Northrop Grumman, according to one person familiar with the process," the WSJ reported. "But upon reaching orbit, this person said, the adapter didn't uncouple the satellite from the rocket in zero-gravity conditions."

This is what happens when Theory comes into conflict with Reality. Theory doesn't stand a chance when it was built by the lowest bidder.
That is why good engineering is overbuilt, overtested, and full of redundancy. Weight and cost limits often prevent that in space launches, so its always a bit of a dice roll.
Northrop seems to have come up snake eyes with a billion dollar wager. Ouch.