One chestnut from my history in lottery game development:
While our security staff was incredibly tight and did a generally good job, oftentimes levels of paranoia were off the charts.
Once they went around hot gluing shut all of the “unnecessary” USB ports in our PCs under the premise of mitigating data theft via thumb drive, while ignoring that we were all Internet-connected and VPNs are a thing, also that every machine had a RW optical drive.
I was a network administrator at a site, which just made me a glorified system admin with responsibility for the network and switches.
Everyone in the IT Dept had the password for the switches. After one person gave a 3rd party vendor the password, I had to change the passwords and exclude him from having it… but then everyone else got the password.
That place was nuts, between that and a few other stupid boss actions, I just moved on. Found a much better job and it was for the best.