You are absolutely correct. Defining agile as principles, or scrum as a method is correct, but doesn't change how the terms are used. Turning dysfunctional teams around is something I'm reasearching (as identifying them is easy).
> If there's one thing I feel that is absent from the Agile Manifesto, it's psychological safety. We have learned in the past 20 years how important this to a teams success. https://old.reddit.com/r/agile/comments/jd29lf/the_elephant_...
Just today, I started reading The Culture Code by Daniel Coyle. The first two chapters are great and it addresses exactly this question.
Result of work effort
quality = -----------------------
Total cost
When focus is on quality, quality rises and costs fall. When focus is cost, costs rise and quality falls.