Difficulties mean an undesirable state of affairs which either can be resolved through some common-sense action (usually the first-order change type)for which no special problem solving skills are necessary. More frequently an undesirable but usually quite common life situation for which there exists no known solution and which – at least for the time being – must simply be lived with.

Problems when referring to impasses, deadlocks, knots etc, which are created and maintained through the mishandling of difficulties.

There are basically three ways in which this mishandling can occur;
A) A solution is attempted by denying that a problem is a problem; action is necessary, but is not taken

B) Change is attempted regarding a difficulty which for all practical purposes is either unchangeable or nonexistent; action is taken when it should not be

C) An error in logical typing is committed and a Game Without End established. This may occure either by attempting a first-order change in a situation which can be changed only from the next higher logical level, or conversely, by attempting second-order change when a first-order change would be appropriate (e.g. when people demand changes of ‘attitude’ and are not content with changes of behaviour); action is taken at the wrong level

Taken from the book: Change principles of Problem Formation and Problem Resolution by Paul Watzlawick et al. Chapter 3 “More of the same” or, when the solution becomes the problem.

Which type of mishandling would closely describe the Target breach case?

One account of the Target case is described in this article