Suppose you have a deep neural network trained on a dataset with a small amount of labeled examples. After applying L2 regularization during training with a fixed value of regularization parameter, the following observations are made:
• The empirical error decreases significantly.
• The true error remains high.
• The variance of the error on different subsets of the training data is relatively low.
• When tested on a diverse set of unseen data, the model’s performance is inconsistent. Which of the following statements provides a plausible explanation for this scenario?