It gets worse: A manager in those kinds of organizations that is truly scared also doesn't want people under them to make decisions either, so eventually everyone learns inaction.
At sope point the organization comes up with a code freeze, and a manager is afraid of changes near the freeze. Them said freeze keeps expanding as you get down to ICs, and eventually nobody gets to release anything in December, even if something is wrong and is costing the company users and money.
It's bad when people choose to quiet quit on management, but it's scarier when they basically are told to do it, in not so many words.