What I've seen in practice in smaller companies, is actually the other way around: everyone is afraid updating any library version because who knows what other team's work it might break. Theoretically, everyone must have extensive tests to cover everything, but in practice it's hard.

But when your team owns a repo, then at least the damage is contained within your team.

Google solves that problem with heavy NIH syndrome (its hard to get promoted by utilizing an external third-party lib, better develop your own), and writing tests, yes. And for those few third-party libraries that google still depends on, updating them is a big PITA.