A demo only proves one narrow thing
A working prototype can prove that a concept is understandable and that a user flow can be shown on screen. That is useful, but it is not the same as proving that the system is ready for real users, operational load, failure states, subscription logic, and messy data.
This is where many founders get misled by AI tools. The front-end comes together quickly, which makes the whole product feel closer than it really is.