This is a follow-up question to this and this.
Let $A=(a_{ij})$ and $B=(b_{ij})$ be symmetric positive semidefinite $n\times n$ matrices such that all $a_{ij}\geq 0$, $b_{ij}\geq 0$ and $a_{ii}=b_{ii}=1$. Let $C=((a_{ij}^2+b_{ij}^2)^{1/2})$ and let $\lambda_n(C)$ be the smallest eigenvalue of $C$. Let $$\Lambda_n:=\min_{A,B}\lambda_n(C).$$ Is $\lim_{n\to\infty}\Lambda_n=-\infty$?
Edit: For any $s,t\geq 0$ and $x,y>0$, the example below with $$C=\Bigl(\sqrt{(s+x\cdot a_{ij})^2+(t+y\cdot b_{ij})^2}\Bigr)$$ also satisfies $\lim_{n\to\infty}\lambda_n(C)=-\infty$.