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it is (literally) impossible to test any piece of software for every possible situation.
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Actually, it is perfectly possible to test software for every possible situation. The software is mathematically proven to behave as expected, and this is how (for example) commercial aircraft flight control software is written - or used to be.
Volvo won't do it because it's extremely time consuming, expensive, and requires a lot of experience.
Windscreen wipers are important but not critical; the airbag deployment code on the other hand is very likely to be proven as I described above.