In my performance psych class at BYU (I was the only non-student athlete in the class), we learned that it takes 10,000 hours of performing the same task over and over in order to master it. This is what I believe you were alluding to in your OP. This is not insanity but far from it. It’s exceptionality.
Now, an individual or organization who refuses to change strategy, change behaviors, or mindsets/philosophy, and expects different results is the context which this quote is referring to. Two different things.
And no, I don’t believe Einstein was the originator of this quote. And if he was, he was probably referring to example number 2.