I think I know what you're talking about. I've seen teams where everyone tries to look exactly the same way and is expected to have exactly the same interests and hobbies. That usually ends up being quite toxic and demotivating.

The trouble is - once the company starts setting quotas and special rules for enforcing diversity, it attracts the type of people that focus on gaming those rules instead of bringing in added value and this quickly creates another form of toxicity.

In my opinion the ideal work environment is somewhere between those 2 extremes.