This sounds more like it could occur at least temporarily when most people get some categorically new task that's potentially costly to screw up, and I could imagine it being voluntarily requested rather than overbearingly applied.

> Other thing I've seen is people without supervision producing less/lower quality results.

I feel like managers identify a risk and apply their toolkit to it, which often ends up being increased oversight regardless of whether or not it's a good idea. It may or may not be I suppose, but it seems like only a niche person would respond with greater effectiveness in response to more frequent and perhaps intrusive scrutiny.