Yes, I had exactly this in my last flat. We were in a small block of four, one was then changed to this arrangement after a private tenant left.
Honestly, it was a nightmare. All but two were single men. We had one young woman with a baby, and one single dad with a young son. The others? Police repeatedly at the door for different tenants. Lots of mental health issues. I lived directly below and frequently heard screaming and throwing furniture around while they were alone up there.
I passed one in the communal hall once and just said hello, nothing else. He then started knocking quietly on my door in the middle of the night (I worked nights, but from home) which I ignored. One morning around 6am I heard this godawful thumping, but I thought it was the main door, or maybe a few doors down. Suddenly my own flat front door burst open and he's kicked it in, swaying, off his face. He screamed I was doing his head in and to get out of his head. I hadn't made a sound - didn't even have the TV on. Then he came to and he just... left, and my lock and doorframe was broken. He later told my other neighbour that I reminded him of someone and that's why he did it.
I was really angry at the time. The same landlord owns all four flats and I was of the view that a new arrangement like this materially changed the terms of the other tenancy agreements - would we still have moved in had we known? We weren't even informed, the letting agent happened to let it slip to me months after it had started.
I moved. My other neighbour is still there, and constantly has updates of the latest drama. People may try and dress it up as a NIMBY thing and everyone needs a place to sleep but this is far worse. I was a woman living alone having my door kicked in because I resembled someone else, and neither the landlord nor the letting agent gave a shiny shit.