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To me, it felt like a psychological prison. I managed to break out.
The only advice I can give is this: if you're unhappy where you are, start planning your escape. Start networking and be patient; in my experience, this is the way to land a good job. On the other hand, if you're content at your current company then who cares what other people call dysfunctional?
That can induce bad habits.
People look askance at resumes from successful Microsoft employees because to succeed in the last N years they had to do things that add no value to anything other than surviving or thriving at that dysfunctional company. Why hire such an person if there's a good chance he'll do some damage to your company while you attempt to deprogram him, during which he'll be much less productive that someone from a less damaged company.
(OK, finding the latter might actually be difficult....)
> Why hire such an person if there's a good chance he'll do some damage to your company while you attempt to deprogram him, during which he'll be much less productive that someone from a less damaged company.
Hire such a person if you happen to be hiring for a dysfunctional company. They've got the experience, and they'll appear productive immediately.
So then the "black mark" on the resume only becomes a hindrance if after, say, 10 years a person finally decides to break out. It's still possible, but it will take a lot more work.