... until you find they finished first by cutting corners and delivering something that is only capable of passing the scant unit tests.

Then the "zero knowledge" psychopathic management style doesn't seem so smart.

It isn't a zero knowledge style. It is an experimental, or knowledge-acquiring style. To employ that approach most effectively it makes sense to have competing teams with purposefully different styles.

> experimental, or knowledge-acquiring style

No knowledge is going to be acquired that way.

It's a manager who has decided understanding the nature of the work is beneath him, when he can deploy someone else's money to wind up some insects that will run around doing the work for him and watch them struggle against each other. Literally zero knowledge, before, during and after.

When whatever result appears they will not analyze the meaning of what happened beyond punishing some insects and rewarding others.

> until you find they finished first by cutting corners and ...

Or until they accidentally burnt down the office building. You're right, doesn't seem so smart