Sorry - how can it not be clearer. The UK knew exactly where the EU would be very, very unlikely to move from in respect of the four freedoms. This we knew at the outset. If May had not - by choice- set out her Red Lines after Art50 was triggered there would have been significant scope for the EU and the UK reaching a deal.
Its a negotiation, for the millionth time!!!
You don't set out your acceptable position at the outset. The UK set their red lines and the EU set out theirs. Since then, there's been a lot of posturing. They will meet somewhere in-between.
There is still scope for negotiating.