German here. A "Verschlimmbesserung" is something that makes one part better and another part worse. If it only makes things worse you don't need a German word for it, you can just call it worse.
For things that were intended good, but ended up bad, there's an English idiom: the path to hell is paved with good intentions.
I still agree with parent’s definition more because it also covers the ironic, sarcastic case, as well as the inherent ambiguity of the word ‘besser’. Plainly put, ‘better’ for who?
If you just say it as a logical series of making it worse while making it better you miss that the intention of the ‘better’ is the first place wasn’t even the intention to make it better for the user.
I don't remember hearing or using it in this context. It's pretty rare that the goal was to make something worse and if the outcome is only bad, you can just call it bad, right? The word is only needed to communicate that there were good and bad outcomes.
For things that were intended good, but ended up bad, there's an English idiom: the path to hell is paved with good intentions.