It is a good definition, and absolutely a real thing. I previously worked as an investigator of companies that provided support people with disabilities and can say that, left completely unchecked, it can lead to people not talking about problems, which leads to people not reporting concerns to avoid being "the problem" by speaking up, which leads to failure to report neglect/abuse...which hopefully needs no further explanation as to why it's bad.
The stakes are definitely lower in a video game but yeah, it happens and I have seen some red flags that it is happening here.
Even if criticism is often incorrect, be very wary of any environment where criticism gets a reflexive argument for why it's wrong. That reflex is unhealthy.
