Of course sales aren't everything (not being sarcastic) I could love a game that sells less than a million copies. My problem with Nintendo doubling down on the Labo is that it was a mediocre product from the start. Sony, Microsoft, any of the three could have made this product, and I would still see it as a waste of funds. Cardboard wears down too fast (especiallyfor the audience they're targeting it to), and the games they included in it all look like something you would get for Free on the Android Playstore.
First Nintendo is not doubling down on the Labo with this, this is probably one of early Labo plans, most of this addons were in first Labo trailer. Second, you clearly overestimating resources and time needed for product like Labo, we talking about cardboard product with collection of mini games, we couldnt have even one AA game for same time and resources spent in all 4 Labo Kits combined, point that we will have 4 different Labo Kits in around one year time tells you a lot.