Yup. Look at the launch trajectory of the Webb telescope. The upper stage engine was too weak for the orbital insertion and the booster had to waste energy putting it higher than need be so the upper stage engine had altitude to trade for time to keep the telescope from hitting the atmosphere.

But it was the optimum solution because that engine had a long burn to take it to L2. Hauling less engine to L2 was worth more than the loss of the engine not being powerful enough to fight gravity.