For sure this is a real example, but it's also largely a permissions issue where users are combining self-modifying capability with unlimited, effectively full admin access.
Outside of AI, the combination of "a given actor can make their own decisions, and they have unlimited permissions/access -- what could possibly go wrong?" very predictable bad things happen.
Whether the actor in this case is a bot of a human, the permissions are the problem, not the actor, IMO.