1) The cops in Minneapolis appear to have the reputation for being psychotic morons. Suspects are not always guilty, as shown in this case and Car theft is most often kids joy riding (75%). Yes, 25% of the time it is organized crime (to steal a car for anything more than a joy ride you need good connections to large organizations to either chop it up or ship it out of the country). It is totally unreasonable to draw a gun on people joy riding.
A pro also isn't going to HD with his wife. Thefts by pros disappear quickly because, well, they are pros and want to avoid getting caught.
2) The cops appear to be illiterate. The theft report said 34 DTM. While the flock cameras did not see it was 34 10 DTM, the cops SHOULD have seen the 34 10 DTM and realized something was off before they stopped the vehicle They should still have questioned them, but should have realized before hand that the license plate was not identical to the theft report and gone in more subtely.
The problem, as shown in TFA, is the 10 are 2 small numbers stacked vertically between the 34 and DTM, so they get overlooked. Should the police looked closer, sure, but I can also see why the made the error because the 34 DTM is in much larger font size.
3) Flock is incompetent and should be banned.
Yes, and should be legally liable for damages in cases like this. At. minimum, if there system catches 34 DTM in multiple areas at the same time, that's signs of a problem, and the art of pattern a computer should be good at detecting. The inability to report a tag as lost also means for this edge case it gets a stolen marker. You could tag it as lost and inform the tag owner not to reuse it if found, and if the correct number was entered if it shows up on a vehicle again mark it as stolen. That of course, would require work and changing a system.