@mavnn @cstross
I think what you're describing here is, basically, the concept of tragedy.
Othello could solve the plot of his play in thirty seconds, simply by realising that Iago is an asshole. He does not do this, because trusting Iago is part of Othello's identity. Hamlet could solve the plot of his play in thirty seconds, simply by not being an overthinker stuck in analysis paralysis. He does not do this because that's who he is.
In a tragedy, the bad thing could be averted, but isn't, because the protagonist would have to act against their own nature to avert it. This gives tragedy its sense of inevitability and makes it so fun to read.
That isn't to say that all tragedy is well done, of course. Like all dramatic forms, it can feel really unsatisfying when done by a hack. But when done well, it feels great because we can shout at the screen "NO DON'T TRUST IAGO HE'S LYING" while at the same time understanding why the protagonist does trust Iago.
There's no reason why this can't be applied to institutions too. We are, arguably, living through a tragedy in which Microsoft has been built into a cult by Nadella (first the cult of agile, then the cult of LLMs) and cannot save itself because that would require it to behave non-cultishly.
My sympathy for having been stuck on the inside of real-life failures, though. Seeing large corporations fail to do what must be done is the reason I've always avoided management jobs and just been a senior IC. You are made of sterner stuff than me if you risked that, and I'm sorry to hear it treated you that badly.