In real life these choices are neither exclusive nor binary. A group might well admit the weakness in internal meetings and PR-manage the exposure of that weakness to the outside without either fully denying it or doing the whole sackcloth-and-ashes bit.
Several weeks ago I wrote a heavily upvoted post called Don't Be Afraid of Asking Personally Important Questions on LessWrong. I thought it would only be due diligence if I tried to track users on LessWrong who have received advice on this site and it's backfired. In other words, to avoid bias in the record, we might notice what LessWrong as a community is bad at giving advice about. So, I'm seeking feedback. If you have anecdotes or data of how a plan or advice directly from LessWrong backfired, failed, or didn't lead to satisfaction, please share below.