In fact I knew a guy whose effect on a project was to wipe out several years of progress but to be fair he was not a -.5 engineer, in some ways it was just the bad chance that led to him having such a detrimental effect, in another scenario he might very well have been a +2 or more engineer.
Additionally I've seen managers/HR demotivate a team of 5 so thoroughly that nobody got work done for 2 weeks. That is -5x from a single meeting.
Bad engineers do bring negative productivity to a team. Hard to say how common they are.
You can't claim engineers are exploited because some cherry picked tech companies make huge profits. You have to look at the tech sector as a whole, including the parts that lost untold billions while the famous ones raked them in.
Though of course that is sometimes a factor.