Of course. I can only assume that that happened in that particular case because a C-permit was applied for. The requirements/checks for a C-permit are more thorough than those for extending a B-permit.

A B-permit will be extended if nothing has changed income-wise or even if the income has decreased and the B-permit-holder is on unemployment benefits or is ill.

Whilst applying for a C-permit triggers a series of verifications which also take time. The foreigner can remain though in Switzerland during the entire time the application for the C-permit is examined as well as during the time in which any appeal is ongoing.