The higher up in large organizations you go, in politics or employment or w/e, the more what matters is not facts, but avoiding being visibly seen to have made a mistake, so you become risk-averse, and just ride the status quo unless it's an existential threat to you or something you can capitalize on for someone else's misjudgment.

So if you can't directly gain from pointing out the emperor's missing clothes, there's no incentive to call it out, there's active risk to calling it out if other people won't agree, and moreover, this provides an active incentive for those with political capital in the organization to suppress the embarrassment of anyone pointing out they did not admit the problem everyone knew was there.

(This is basically how you get the "actively suppress any exceptions to people collectively treating something as a missing stair" behaviors.)