I think this is a massive problem, and it produces just bizarre situations. Flat cultures produce weird side effects (you can have a stalemate that shouldn't exist) but extreme-status-hierarchy cultures just produce an entirely different level of crazy.
Years ago (not my current employer), there was a big offshore team that was a huge pain in the neck because their entire development culture was one of deception and defensiveness - they'd deliver garbage but then spend enormous amounts of energy managing up and propagandizing to their reporting chain and executives that everything was finished, high-quality, etc.
One of the security teams practically begged for someone to help get this team to fix the bugs they were filing. The other team was straight up closing pretty much anything they could as "incorrect" reports or classifying all the bugs as ultra-low severity (which is basically "will not fix") so that their metrics stayed perfect. Lots of issues like this. When they were challenged on it from the outside, by one of the guys who didn't have a sense for the political situation, the best way to describe the reaction goes way beyond "circling the wagons" - they went full nuclear, politically, on that guy. No holds barred, a total nest of vipers. For engineers who have never experienced companies with deep and vicious politics, it's hard for them to understand what it's like at companies like that.
Then one day, one of the best executives at the top of the chain decided that he was going to re-organize his directs and fold these teams together, under someone from the side of the house into which the security team reported.
Now, cultures of managing up are good at reading the waters and so you'd expect that they'd change their tune anyway, and they did, but the part that was shocking to all involved is, as a side effect of the exec shuffle, the security guy above was given an important-sounding but meaningless title, and suddenly the interactions between that organization and the security guy went from a one of subversion, political smearing, etc. to one of absolute and total deference overnight.
The offshore team wasn't any _better_, they were still marginal and you couldn't trust a single thing they said, but the instant attitude change from "defiant, we-are-power-adjacent, you'd better watch yourself" to "oh XXX, we're helpless, nothing can be done, yes we will try but.." due to what was essentially the change of a string in a database somewhere was just crazy to observe. Everything went from "that guy is terrible, that guy doesn't know, blah blah' to "yes, oh, XXX is great, we love XXX, he is helping, ..."