My last industry job saw the company implode from this cycle as everyone got pissed off and left the company. My old ex co-worker sent me a letter from the CEO last week saying layoffs were starting because revenues were down and they keep losing clients...
Having been there too, I feel like this is another recipe for disaster. Technical management needs to be able to make calls on escalations — that's in fact one of their main jobs — and when they don't have the depth of knowledge to make the call on merit, they make it on rash impulse, or favoritism, or (perhaps worst of all) don't make the call and let issues fester.
Academic science is pretty much designed this way.
You get a faculty job based on your brilliant work as an IC (i.e., first author papers) but running a research group is a totally different skill set—-and often one people get very little training for.
Also, oh my do I ever have an extremely similar experience of an IC-type engineer going into a leadership position and trying to "engineer" it: put all teams, sprints, tech visions, growth frameworks, etc. in huge spreadsheets. I look back in jest now, lessons to be learned!
And another time, seen a less technical leader step in, see engineers around me roll their eyes a couple of times at the lady (with maybe a smidge of male chauvinism blended in), but then see her actually fire bad hires, hire star players, and get everyone to align their priorities so they could be productive. Leadership is a very different job from the kind of technical excellence that too often gets rewarded by promotions (vs raises or bonuses).