https://www.issendai.com/psychology/sick-systems.html Maybe "toxic workplace" is meaningfully broader than the psychopathy described in this "sick systems". But I wouldn't jump from "totally honest and transparent" to "toxic" straightaway.

Notoriously, Bridgewater aims for "totally honest and transparent" communication.. and while it's clearly not for everyone, it seems to work for them.

For everyone else, clearly "safety to make mistakes" is a required condition before communication can properly be 'totally honest and transparent'. -- Otherwise, what I think you're getting at, is that "honest and transparent" whitewashes toxic political dynamics.