Industrial researchers and non-PIs (IE, research analyst working in a PI's lab) don't have the same freedom and integrity rights as a PI. To me this seems like a reasonable (and probably the only reasonable) policy for industry.
I don't really think it's dystopian- if a paper I wrote reached the point of needing a retraction it means some serious messup occurred or there's a major PR fiasco.
Note that in this case I am not sure if there was a retraction, or an desubmission- the paper hadn't been published yet so it's not really a candidate for retraction. The term for this is 'withdraw submission'
It's just as if you'd want to open source some code that you wrote for your job, and suddenly the boss says "hey, don't do that" - there are many reasons why they might want to not publish it, and it's not your code to publish as you want.
In this world, where there are bills to pay and you can't disadvantage yourself if you want to be ok. Having bills to pay is, I agree, just mad.
To some extent, you have to realize that one day you will fall on the wrong side on the fence and you'll be the victim of your own creation.