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>What do you think they are afraid of? What risks are there? Is it possible to mitigate these risks in some way?

Not OP, but usually there are no (trusted) unit tests.

IMO, unit tests, integration tests, TDD, BDD, etc do not matter as much as the size of the codebase. If your system has millions of lines of code, you are doomed and no amount of unit tests can help you.

I believe thats why modularization was invented?

Modularization per se does not work. What works is administrative boundaries. Once a product reach a certain size, the team should be split up.

"Once a product reach a certain size, the team should be split up."

That is also called modularization.

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