Sounds like a system incapable of processing feedback.
As a former manager of complex systems, this sort of thing is very familiar. It’s a major vulnerability. You need to know, you need to deal, and you need to take seriously the people who are informing you.
This should be concerning to upper management. If they themselves are incapable of hearing this, well, it’s a fatal systemic flaw.
“Sounds like a system incapable of processing feedback.”
Yeah, KGB dictatorships are sorta like that.