One chestnut from my history in lottery game development:
While our security staff was incredibly tight and did a generally good job, oftentimes levels of paranoia were off the charts.
Once they went around hot gluing shut all of the “unnecessary” USB ports in our PCs under the premise of mitigating data theft via thumb drive, while ignoring that we were all Internet-connected and VPNs are a thing, also that every machine had a RW optical drive.
What you are describing is the equivalent of somebody breaking into your house so they can steal your house key.
No, they’re breaking into your house to steal your work key. The LastPass breach was accomplished by hitting an employee’s personal, out of date, Plex server and then using it to compromise their work from home computer. Targeting a highly privileged employees personal technology is absolutely something threat actors do.