I can name a couple of industries where compliance (and their enforcement arm, security[0]) teams require N+1 different monitoring and enforcement agents on all systems because Compliance[TM]. Due to these agents the systems' IDLE load is approaching 1.00 - on a good day. On a less good you need four cores to have one of them available for workload processing.
0: I use the word "security" only because the teams themselves are named like that. You can probably infer my opinion from the tone.
In a past life I used to work for an anti-virus company who in addition to the Windows product sold the very portable virus-scanning engine for pretty much any other OS you could name. I worked in the *nix department, where we ported it to everything from Linux to the BSDs, HP/UX, Solaris & beyond, as well as more obscure setups like z/OS.
So, we sold people software that would run on some fridge-sized Sun machine running Solaris, to ensure that their Solaris machine wasn't about to get infected with the latest Windows virus.
The occasional support calls with technically minded *nix admins were amusing. We knew that what we were selling them was completely useless and made to secret of that fact, they likewise knew that the software they were running was useless to them. The one thing they cared about was that it didn't contribute to the load, and we did our best.
But some PHB somewhere in their organizations had decreed that all computers everywhere must have an anti-virus scanner, and if you're sufficiently motivated to buy something eventually someone will sell it to you, even while telling you that you don't need it :)
I definitely see your point -- who hasn't seen or heard of companies ruined by officious rulemakers with no clue, rules to make something more secure that do the exact opposite etc. I've seen my share.
But blanket-banning an obsolete and insecure hash algorithm isn't a bad thing, it's entirely reasonable. In this case, as the article makes clear, it's git that's at fault.
> I have very recently seen customers move to older much less functional (or useful) VCS platforms just because of SHA-1.
A company this dysfunctional has problems far beyond their choice of revision control system.