I've done it. It was terrible. I'm glad the project ended.
There's no fixing it, though. I can know the "base tooling with zero config" … and I'm just less productive, that's all there is too it. Customized tooling makes me faster than the base tooling. (I did start trying to find "inventive" ways to try to work around the problem, of course. My case wasn't like military air-gapped or anything, just the only connection was via RDP. So for example, copy & paste is a communication channel.)
I'm not arguing for it, just saying I've seen it at multiple billion-dollar+-a-quarter companies.