But it's absolutely crucial to VC funded businesses. Current VC groupthink isn't "how can we create businesses that deliver value", it's "how can we create businesses that we can convince other investors to see as valuable before we cash out and move on?"
That's why we have things like "increasing headcount" as a goal, because increasing the number of people a business employs increases its perceived value. It doesn't matter if it destroys team dynamics, increases the burn rate, etc. It's a tool used to make a company seem more valuable before the VCs exit.