There's a very large number of cases where that's the right choice for the business.
Actual code/projects? Detrimental
[1] E.g. I spent an evening on this: https://github.com/dmitriid/mop
like ... you expect people to actually be committed to "the value of a hard day's work" for its own sake? when owners aren't committed to value of a hard day's worker? and you think that your position is the respectable/wise one? lol
Back in the days of SVN, I'd have to deal with people who committed syntax errors, broken unit tests, and other things that either worked but were obviously broken, or just flat out didn't work.
Taking a bit of pride in your work is as much for your coworkers as it is for yourself. Not everything needs to be some silly proles vs bourge screed.
And are you assuming the alternative involves not clocking out? Because "clock out, finish when there's more time" is a very good option in many situations.