I've definitely seen cases where existing code was reused for a secondary, seemingly similar feature, unnecessarily complicating it and creating maintenance headaches when business requirements between the two features later diverged, and at best you might be able to claim it would have been better to simply copy & paste the code and modify it first, then look at how to refactor to avoid obvious cases of duplication. But I wouldn't consider that an example of developers trying to stay DRY at all costs.

Honestly the biggest problem I've had with maintaining the principle of not duplicating code is when a PO and/or UI/UX designer think we should only apply improvements to one feature to reduce the amount of work, when in fact it should be less work to apply them to all.