They should have to disclose the subsequent work if they want patent protection for that subsequent work, right?
I'm not a patent expert, but this seems to break the social contract of patents. Perhaps there is something in the patent law that prevents this?
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AFAIK there's isn't. You can patent a leash for rodents, and PTO is not going to say "it's not acceptable, nobody wants to put rodents on a leash". The only questions are whether your invention is novel and non-obvious, not whether it's useful.
As such, if you can patent stage A that produces <unuseful stuff B>, nobody will tell you that it's unacceptable because B isn't useful. The usefulness is a completely separate question, to be decided by the market.