Or worse than impeding progress, everyone adjusts their expectations to only that which can comfortably fit into a sprint. Big gnarly bugs, meaty technical problems, or innovative solutions - too risky. Better just take a few random tickets off the board and keep plodding along.

The direct effect is organizations start systematically ignoring the forest and start obsessing over the trees, simply because trees are easier to measure. And then inevitably wondering aloud "why is velocity AND quality tanking?". Anyone with half a brain can see why - disincentivizing innovation destroys innovation.