MSan didn’t exist at the time and valgrind doesn’t work on a ps2.

Neither of those are necessary to find this bug as it could be found using a stomp allocator if you’re a developer on the project at the time.

Generally, game console "debug" configurations aren't "true" debug like most people think of -- optimizations are still globally enabled, but the build generally has a number of debug systems enabled that naturally require the use of a devkit. Devkits, especially back then, generally had 2-3x as much memory as retail systems -- so you'd happily sacrifice framerate during feature development to have those systems enabled.

Debugging was (and still is) generally done on optimized builds and, once you know the general area of the problem, you simply disable optimizations for that file or subsystem if you can't pinpoint the issue in an optimized build.

The biggest performance hit, in general, comes from disabling optimizations in the compiler. I say "in general" because there are systems that might be used to find this kind of thing that DO make a game wholly unplayable, such as a stomp allocator. Of course, you wouldn't generally enable a stomp allocator across all your allocations unless you're desperate, so you could still have that enabled to find this kind of bug and end up with a playable game.

The more likely reason here is that no one noticed or cared. GTA:SA is 21 years old and this bug doesn't affect the Xbox or other versions.