Unfortunately, yes. I encountered it with people, warehouses, machines... In all of those cases aiming for 100% is just a bad idea. People burn out or find creative ways to look busy, warehouses loose all flexibility and create a shit load of problems without breathing room, machines at 100% build an enormous maintenance backlog and mountains of WIP and inventory nobody needs (except for having the machine running close to 100%).
No idea why people actually think 100% utilization of any resource would be a good idea... I guess it helps if your 100% are including pointless meetings as part of "productive" time.