I had a manager who believed very strongly in this approach. Her go-to tactic was to take whole teams out to an idyllic retreat center on an island where we did ropes courses and trust falls and spent the evenings sitting in a circle until late in the night sharing every tale of woe from our childhoods in the pursuit of better understanding one another and correcting team dysfunctions. Best case stories were about parents who did not provide the love and affirmation someone needed. Worst case...well it was an eye opener on how many people were fairly deeply damaged by those around them in their childhood or formative years. Many tears were shed and yes it did make us appreciate each other more as unique individuals and not simply cogs in the corporate machine, but I question how effective it really was.
As a private person who tried to maintain some level of segmentation between personal life and my career, the group over-sharing made me very uncomfortable. And it was a pretty huge expense in terms of time away from the office, payroll, and of course the tens of thousands of dollars for the retreat center and management/leadership coaches.
It also made me long for the management team I had come from where there was still the devotion to helping employees achieve personal and career goals, but without all of the group therapy. But the projects my old team worked on were not quite as cool or impactful as my new team. I used to windsurf, and one of the things the windsurfers would say is "don't leave wind to find wind", or in other words, there are real risks that come with leaving the good in search of the perfect.