Taking on another project, or workstream, or idea, or investigation in a team is pretty much entirely downside.
- more context switching, which means people get cranky faster
- lower bus factor for any piece of work, until its 1 dev per thing and that things stops of the dev isn't there
- lower people count on work means everything takes how long 1 person can do it (2 people is twice as fast for parallizable work)
- slower dependency resolution until something as basic as getting a PR reviewed is a big deal
- fewer people seeing the problem means less experience brought to bear, which reduces speed gains from having seen this stuff before
And more besides. For every project the goal should be maximum parallelism.