There were suggestions (pre-Covid) that the Elizabeth line, which increased east-west capacity in London by some ridiculous figure (over 50% if I recall correctly) could be saturated by induced demand (or if you prefer the realised of suppressed demand) within six months of opening.
It's also worth noting that induced demand exists even for public transportation systems. A single rail line can solve the bandwidth problem for a longer time than a new lane on a highway, but if growth continues you'll still end up needing to add new trains and rail lines or add additional modes of mass transportation.
Induced demand is never a reason to leave the problem of bad infrastructure unaddressed, it's just something we have to take into account as we try to improve things.