The young engineer feels that they are a gift to their employer, and should have the freedom to work as they want.
The older manager feels that the work environment has a structure inherent within it, to which people are expected to comply.
As the engineer, it is your right to quit if you don't want to play by the rules.
As the manager, it is your right to fire people who won't work within your guidelines.
Either way, it is not a privilege on either side, nor a punishment if one side or the other decides to end the relationship.
It is simply two incompatible perspectives. If neither side will change, best to move on.