There was nothing wrong with putting it into production, it’s just that it didn’t suit Sweden’s needs for the Visby class.

Unlike either the Mica VL or Umkhonto, the BAMSE is not a vertically-launched missile and therefore cannot be stored and fired from seamless below-deck launchers. It would have required an oblique launcher mounted externally, which would have compromised the Visby’s stealth profile and may have required a significant redesign. Using vertically-launched missiles is a lot easier.

The BAMSE is also a Command-to-Line-of-Sight (CLOS) missile, which means it requires constant guidance from the ship’s radar in order to score a hit. In practical terms, this means that you’re only able to launch missiles along specific axes (ie, where the radar is targeted at a given moment) and you’re limited both by the number of missiles you can launch simultaneously and the flight channels those can follow. In contrast, the Umkhonto is a fire-and-forget missile with full hemispheric protection, meaning that you can launch 8 of them in rapid succession and have them all target separate targets approaching from different directions. So it’s better against a saturation attack.

Finally, the Umkhonto-R, which Sweden is also hoping to bring into service, has greater range than the BAMSE.

The BAMSE itself is a fine missile, but it just wasn’t suited for this particular application. So far as I know, however, its adoption by other arms of the Swedish military continues unabated.

Given that Sea Wolf went from a non-vertical to a vertical launch system, I’ld assume it is not a problem that cannot be overcome.

Also CLOS guidance doesn’t necessarily require radar. A passive ElOp director would also do, and these can be much smaller than a radar director so that they are a) less of a signature problem and b) more can be employed thus partically solving the channels problem. Incidentally, the Israeli’s don’t seem to think that CLOS is much of a problem with their Barak missile, especially not when combined with a radar like Elta’s MF STAR.