There's a lot of good videos out there explaining the full scope of why production is under such a strain. But from what I can summarize, they all essentially say the same thing:
People bought new guns with recommended amount of ammo to complement it (500 rounds) during the great Toilet Paper War and people feared for economic collapse
Then when the riots and social unrest started, more people jumped on the gunwagon and bought at least 500 rounds with their new purchase.
Then after all that, normal buyers go in and see the barren shelves and say, "I oughta max out my stockpile since there must be a shortage!"
And there goes the rest of it.
Now supply and demand rules the day and the manufacturers can't even keep up with the requests.
*Phew* That was a lot.
You are right and wrong. People bought guns and no ammo. Production also slowed due to the Covid affecting factories which did not happen in previous panics. The TP panic and riots brought a lot of new gun owners into the fold.