It's been a while since I read the books, but as I recall the working assumption was that the story of the Deathly Hallows was essentially true. That being the case, all three would have been created by Death himself (herself?), which makes it plausible that they could bypass otherwise immutable rules of magic. This seems supported by the fact that the invisibility cloak and wand work as advertised, with a power that was never since reproduced. So given that the other two hallows appear to work as Death agreed, why didn't the resurrection stone?
The elder wand had a nasty side effect of getting one killed in a duel, but it was the most powerful wand in existence exactly as requested. The cloak would be the one that Death would have the most reason to sabotage, and yet it allowed one brother to escape Death until a time of his own choosing. The resurrection stone should have been the one most easily within Death's power to reproduce, given that he 'owned' or 'claimed' (as I believe the text said) the souls that would be returned by it. So why was the resurrection stone flawed? If Death was able to choose to deny one of the requests then one would think he would fail to provide a working cloak that allowed a mortal to essentially 'defeat' him.
I don't think is a duplicate because I'm not asking if the stone works, as it clearly doesn't, or how the stone works, as has been explained elsewhere. I'm asking why it doesn't work, as it seems logically inconsistent with the other information that we have. If memory serves, the evidence implies that Death had no choice but to honor his offer and craft whatever items the brothers requested, also implies that he had the capability to create items beyond the capability of a mortal wizard, and he by definition has at least some power over the souls of the dead.