I've certainly seen my fair share of these types - too busy (ie. lazy) to really get stuck into detail during a project even when invited to do so, but very quick to point out an issue after a few minutes of expressly looking for one when it's too late.
They seem to see it as demonstrating their experience and superiority over others ie. "I only need a few minutes to find an issue". In my experiences, they also tend to insist on saying "everything needs to go through me", but never make time to follow through - out of laziness. This gives a high ROI on effort expended to stress created.
The best times I had with these people (when I was beyond caring) was laying low and doing launches semi covertly, so that there was time for clients to provide positive feedback and praise first. Then play dumb and deliver news about launch and feedback as a package.
At least to me, one of the defining bully characteristics is an inability to moderate their own behavior, even for their own benefit.
Then, the people to whom the actual task of implementing it was left can’t deliver the grandiose perfectionist idea, and the narcissistic boss can and actually wants to fiercely abuse their power over them in order to feed on the high of superiority and control over them. It’s the perfect position for this kind of person, they can feel high all the time (eventually the tolerance will kick in and the boss must leave though but this can take some time).
Organization-wise it’s a bad boss really. It’s the job of the creatives to come up with great ideas, then the boss should moderate that working together with the feedback from the implementers. Instead the boss is due to personal weakness too suggestible against the creatives and puts the damage of his own making on to the team with bullying.
I worked for a non-toxic-personality friendly boss of this type. Took me a long time to figure out how to manage upward in that case. Everything that had worked with previous "builder"-type bosses seemed to backfire and I wasn't sure why.
Because the personality was good it was especially frustrating. Deliver stuff on time without bugs or surprises, but still fail to change his mind about ambitious-yet-unrealistic goals, or put a dent in his confidence in (and preference for) the "idea people" feeding him similar goals in hypothetical-land. "But really, if you'd just build [vague idea], we'd be golden!"
Out of curiosity, what kind of background did your toxic boss have? Is it technical or business side?
I have a couple hunches for why this happens: 1. These people are dreamers and dislike people who bring them back down to reality, even if they need those people to actually build things.
2. They feel superior to people on the ground doing the building. Like they're above getting their hands dirty.