The worst of all worlds is when a blind application of the rules results in bad behavior.
This situation seems to come up frequently, and I'm very often appalled at how readily otherwise normal people will "follow the rules" even when it's clearly and objectively bad, and there may even be existing pathways to seek exceptions.
Some types of people are “rule followers” are can’t fathom breaking any rules.
There are also “rule breakers” who can’t fathom being told what to do.
Both types of people are insufferable.
AKA "perverse incentive"[0]
A perverse incentive implies following the letter of the law, but cheating the spirit of the law.
GP is just talking about inefficient rules