So one of the fundamental principles of empirical process, and Agile is supposed to be an empirical process, is transparency. Transparency is so important to empirical process, it’s often called one of the pillars of empirical process.
But you can have too much of it. Here are some examples.
You have a team that’s functioning well. They’re delivering. But somebody outside of the team (often a senior stakeholder) gets it into their head that they don’t like one member of the team. This same senior stakeholder hears about the Agile notion and thinks that it entitles them to a Tayloristic view of everything that every member of the team is doing, broken down into individual tasks.
This reveals some “flaws” in the team. One member of the team is hungover most mornings and so rarely does anything before lunch. One of the other members of the team is very junior and the rest of the team knows to only give him the most basic tasks to do. One guy seems to be doing most of the work.
The senior stakeholder gets very excited. He realises that he can make the team more efficient by letting the junior guy and the heavy boozer go and by promoting the guy who seems to be doing all the work. The team grinds to a halt. The guy who got promoted leaves.