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.
Access to change production systems was limited to a single team, which was tasked with doing all deploys by hand, for an engineering organisation of 50+ people. Quickly becoming overloaded, they limited deploy frequency to five deploys per day, organisation-wide.
Bit of a shit-show, that one.