The moment you admit failure as an employee, you are out of the company. And no for most people it is not easy to find a job that will not disrupt their lives (aka move cities, change financial planning, even health insurance).
So employees do what they have to do. They will lie till the last moment and pretend that the initiatives they are working on are huge value add for the company.
In the past you knew you would retire from your company, also the compensation differential was not that huge across levels, so there was little incentive to BS.
Today everything is optimized with a horizon of a financial quarter. Then a pandemic hits, and we realize that we don't even know how to make freaking masks and don’t even have supplies of things for more than a week.