I have seen this. Presumably it is done for team cohesion and it may work for a while, but as soon as someone sets the personal boundary and refuses to talk or says something generic it starts looking weird.
My employer has no right to demand that I talk about my personal life at work.
I answer "not much" and immediately pivot to giving a work status report before any followup question can happen, and my manager lets me get away with that. That's a little better, but it still starts every week off on the wrong foot.
I'm very far from shy, though, and if/when the general subject comes up in more casual conversation, I will certainly say something.