That surely played a part. But honestly I think their biggest issue, might have been that they didn't have a "functional" engine for the type of game they were making, if we are to believe what is said, that the engine was developed alongside the game. Then it should also be fairly obvious I think, that if the engine run into issues so will the whole development of the game.I am not a developer, programmist, or anything like that.
But think about it logically. With the Witcher 3, CDPR had lots of experience. The Witcher 1 and 2 are games with lots of flaws (especially 2, with its clunky inventory, broken minimap etc.) but they provided them experience for the Witcher 3. They knew (more or less) what to do and what not to do, because all the Witcher games share the same setting: a medieval fantasy with lots of combat, intense story, and lore.
This is not the case with Cyberpunk 2077. The game is their first title set in a futuristic setting with guns, cars, skyscrapers. They even changed the camera perspective.
They simply didn't have enough experience with that kind of game, and they failed.
And something could suggest that this is in fact an issue, looking at some of the bugs in the game, which could potentially be issues with the engine and not as such the game itself. But just speculating.