The analysis I heard earlier today was that after the engine failure the rocket would essentially have the trajectory of a brick. It would have detonated its warhead on impact as expected, but it would also cook off all the remaining fuel since it clearly didn’t reach the intended destination.
They fire off these things from civilian areas all the time. I don’t see how it’s so surprising to people that a shitty rocket fired out of a super dense city could fail and hit a building like a hospital.
Misfires happen all the time, but when you’re shooting from within city limits the chance of one leading to tragedy is much higher.