Work/Products gets "finished" - Projects get "finalized"
Finalized is not a synonym "finished" with different connotations. The words refer to related but distinct things.
For example, consider a project to create a software application:
The developers do their work, until they are "finished."
Then various other defined tasks within the project are done (testing, user acceptance, management sign-off, etc.). When all the required steps are complete, the project is "finalized."
Then imagine a serious flaw is discovered. It is clear that there is work to be done - the product is not "finished." But the project has been "finalized" - that does not change. (And the work to fix the flaw will probably be part of a new project.)