The problem arises when the bureaucracy becomes, at least for portions of the organization, the end in itself rather than a means to an end (the end being something like better service, efficiency, and accountability). That's when it starts to contribute to frustrations and bad experiences (and, if allowed to continue in this vein, enshittification).
Bureaucracy does not cause things to get worse. It's not a bad rash that the system displays when it's about to get worse or the puss discharged when it's irritated.
Bureaucracy is a response to a system that works well. It adds rules and hierarchies and red tape to maintain the system state as it is. It's organizational glue.
Bureaucracy is only a problem when trying to change a system.