The problem I think this article is getting at is paternalism without buy-in.
On the topic of loss of credibility, I think focusing on nudity in general is also a credibility-losing problem. Midjourney will easily make very disturbing, gory, bloody images, but neither the Vitruvian man nor Botticelli’s Venus would be acceptable.
Corporate comfort with basic violence while blushing like a puritan over the most innocuous, healthy, normal nudity or sexuality is very weird. Also, few people for even a moment think any of it is anything other than CYOA on their part. Also, some may suspect a disingenuous double standards like, “Yeah, I guess those guys are looking at really sick stuff all afternoon on their backend version” or “I guess only the C-Suite gets to deepfake the election in Zimbabwe.” This would be a logical offshoot of the feeling that “The only purpose to the censorship is CYOA for the company.”
In summary: Paternalism has to be done very, very carefully, and with some amount of buy-in, or it burns credibility and good-will very quickly. I doubt that is a very controversial presupposition here, and it is my basic underlying thought on most of this. Eventually, in many cases, paternalism without buy-in yields outright hostility toward a policy or organization and (as our OP is pointing out) the blast radius can get wide.
I do not know how to explain this properly, but there is some amount of “non-work” work hours in every job I have done. If I were allowed to do everything that needed to get done and then go home at the end, no question, no raised eyebrows, etc, then most office jobs I have had would have been 2-4 hour work days.
Indeed, it’s hard to get more than four solid hours of cognitively intense work done on any given day anyway, and if I have done this, I consider it an especially productive day. I mostly work for myself now and typically do my 2-4 hours of intense cognitive “real production” work starting a half an hour after I wake up, with all the benefits of a night of sleep, good blood sugar, and a fresh pot of coffee. After lunch, I might work on a couple of hours of boring housekeeping type stuff, answering emails, ordering supplies, talking to providers, cash i/o, etc.
But those office jobs, really, most days were spent filling 8 hours and a half with what could have been a single uninterrupted 4 hour block. I think some of the filler is also “meetings.” I think a lot of people in broadly “middle level administrative” roles have probably experienced something similar.