Does "does not work that well" translate to "broken"?

I'm here with this argument between whether "does not work that well", means "completely broken", or "not completely broken". Personally I believe it means the second (not completely).

No. "Does not work that well" does not usually mean something is broken. It might just be bad at the job because of how it was designed.

The statement might also be used to show that the product did not meet the user's expectations.

For instance, a cleaning tool that is used to wipe a surface might leave a bad smell. Someone might say it does not work that well because as much as it helps wipe the surface clean the end result is not desirable because of the smell it leaves on the surface.