I'd also add that high-performing teams require psychological safety (e.g. mistakes don't get punished), the research is pretty clear. So punishment is explicit blocking of high-performance.
Everyone makes mistakes, sure, and that should be accepted, but if they are caused by carelessness or incompetence, or if the same mistake keeps being repeated then there ought to be consequences.
A safe environment does not mean anything goes.
Incompetence is generally caused by a lack of training, and carelessness is driven by culture. Yes, there really are cases where an individual is a problem, and potentially even needs fired. But most of the time it's the organization and its culture, policies, etc. that are truly at fault.