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.
At a place I used to work one of my coworkers just had their password as a barcode taped to their desk. Now to be fair we worked in the extra high security room so even getting access to that desk would be a little tricky and we had about 20 unlabeled barcoded taped to each of our desks for various inventory locations and functions. So if someone wanted to get into their account they would still have to guess which barcode it was and get into a room only like 10 people had access to. It still felt pretty damn sketchy though.