“Unlimited time off” is a misnomer. It’s not unlimited, but just not officially monitored. Everyone I know that has this as a policy gets soft guidance on how many days they should be taking. It’s similar to switching from everyone getting a 30 minute timed lunch break to everyone just taking lunch however they see fit. It doesn’t mean that you can take a 3 hour lunch everyday. But you can take your normal lunch, which is some days shorter some days longer. And if it gets in the way of your work then the responsibility is on you and your manager.

From a business perspective, it’s a benefit because it’s one less thing to keep track of, and they don’t have to pay out unused vacation days. But to a worker, especially people focused and busting their butts, it’s a little annoying because it doesn’t feel like the time is earned or actually yours. But it does make vacation planning simpler for sure.