I believe this causes the aversion to risk, as effectively every possible operation becomes a "high risk' endeavor. By allowing and accepting mistakes from an NPC managerial perspective, I believe players will have more leeway to scheme, plot, and attempt things without the overhanging fear of loosing a year's worth of effort because of something as small as a misunderstanding of a game mechanic thatm ay not operate as logically intended.
Again, this is just from my perspective. I've seen and experienced being absolutely crushed by an NPC because of a mechanical misunderstanding or a simple mistake. It has certainly tinted how I operate in this game of cooperative competition, which my it's very definition requires people at least 'try' to win at their schemes.
I would be much more willing to attempt something personally if an 'L' didn't automatically mean losing a ton of hard work. A pattern of stupid risks without return would be required instead, giving me the breathing room to mess up, lick my wounds, and understudy someone else for a bit while the heat cools off.