No, He set her up with a criminal/gang leader because he thought she was having a mid-life crisis. Dylan knew who Aiden was from the start in that scene and his background. That wasn't a mistake. It was a betrayal for setting up his mother, and it didn't make any sense from what we knew in the story. How does Dylan realize she was in a mid-life crisis, or better yet, How does he even know what one is at his age? He set up his mother with a criminal to force her to be sexy again??? that was terrible writing.
Dylan as the perpetrator of the blackmail was one of L&P's strangest ideas. And this from a developer who, by his own admission, was striving for realism in his story. Having Dylan perform this act on the idiotic grounds of wanting to help his mother in a midlife crisis. What young person of Dylan's age is interested in the problems of his mother, who is about 40 years old.
That Dylan chose Aiden of all people as a tool for his idea can still be explained. After all, Dylan had just come to this school and it is realistic to assume that he thought Aiden was a school bully but not a sociopathic criminal.
As has been correctly pointed out here, L&P let Dylan have the one to admit his mistakes. But he didn't want to use this insight to make Dylan more mature throughout the game but only on the Amber/Dylan side route.
On the main route so the statement of L&P this betrayal of Dylan to his mother should not play a role any more.
And that's exactly what many of the players had a big problem with. How was this supposed to work? Not only would Dylan have carried this mark of Cain throughout the rest of the game and never been able to free himself from the mark of a loser. It was also completely implausible that Sophia would never know the whole story. L&P has put a lot of effort into the sadistic character trait of Aiden in the last two updates. This can be used to justify the assumption that Aiden would have told Sophia at least at the end of the 12 tasks who she had to thank for all these humiliations. How did L&P plan for Sophia to react to this - with a shrug of the shoulders?
Perhaps the developer had planned to use this betrayal of Sophia as the final building block for the estrangement from her family. Liam who only works, for whom Sophia has to prostitute herself to pay off his debts, Dylan who betrays Sophia to a sadistic criminal and a daughter who only cares about herself (variable "Elli_Bitch").
But on all other routes with Dylan, whether sexual interactions with him take place or not, the truth had hit like a bomb. And L&P, I don't think, had a good explanation of how he could have then explained away Sophia's anger, shame and fear. Simply saying that Sophia is now so slutty that she doesn't care anymore probably seemed too shallow and cheap to L&P, not to mention believable.
That's why he had to drop this twist.
It is a pity that we can never discuss this event with L&P. For one thing, he would have to admit a mistake, and it seems that admitting a mistake is not his strong point. On the other hand, L&P may not want to discuss this deleted turn because he would have to reveal too many details of future story.