And imagine that it probably happens for every instance of centralisation and regulation in our society - with few people connecting the dots and tracing things back by some well-meaning but clueless bureaucrats
This happens all over the place in private industry too. Nothing unique about regulation or bureaucracy that produces effects like this.
If anything, centralization is the best tool to detect and avoid issues like this. Locally, every decision is completely reasonable. It’s only zoomed out that it doesn’t make sense.