I think you can tell a lot about a place like Egypt just based on the economic conditions. Nobody should be surprised that safety is left by the wayside someplace where liveaboards have to price well under $2000 USD for week long trips to be competitive in the market. Combine that with a lot of corruption and lax oversight in the government and it's a recipe for disaster. This isn't solely an Egypt issue, as the same conditions can and do exist elsewhere on occasion. But what's maybe unique about Egypt is that the Red Sea has historically been an area with very high demand and supply for dive operators and boats, more than many other places. So when that demand cratered almost overnight, the amount of competition for the remaining supply of tourists combined to drive prices down much further than might have occurred someplace smaller with only a half dozen liveaboards operating.
And then consider that as the prices they could charge plummeted, their expenses remained largely unchanged, and nobody was really monitoring or enforcing regulations very well. So of course they're gonna cut every corner they possibly can outside of mandatory costs like fuel and food. Maintenance and safety are the first to go, because you can operate for a time without them. Cheaper and less experienced crew are also hired, which I'm sure has contributed to some accidents. Even with the malfeasance, I struggle to see how many operators are very profitable. Many are probably break even at best in these conditions.
What does this mean for divers wanting to go to Egypt? For many like myself it means just not going until the situation is demonstrably improved. For those who must go, you can stick to the higher-end operations and do your research to mitigate some, but not all, risk. In the liveaboard space you generally get what you pay for (to a point), though with the amount of economic pressure in the area I don't necessarily think the more expensive boats are immune from cutting the same corners as the bargain basement ones. It just might be less likely. So if you go just understand that you're rolling the dice much more than many other regions where profitability is less of a challenge for operators.