This has been my exact experience. Absolutely everything is tracked as a work item with estimates. Anything you think should be done needs to be justified and tracked the same way. If anything ever takes longer than the estimate that was invariably just pulled out of someones ass (because it's impossible to accurately estimate development unless you're already ~75% of the way through doing it, and even then it's a crapshoot) you need to justify that in a morning standup too.
The end result of all of this is every project getting bogged down by being stuck on the first version of whatever architecture was thought up right at the beginning and there being piles of tech debt that never gets fixed because nobody who actually understands what needs to be done has the political capital to get past the aforementioned justification filter.