It's a shit show, is what happens!
Couple of examples:
Boss 1: Staff member had alcohol issues. Racially abused a member of public whilst drunk on company time during their probation. The disciplinary? Ended in a hug. Because they were sooooo understanding and empathetic. Staff member continued to be a problem. Any disciplinary actions repeatedly blocked because boss was being "understanding". Eventually, staff member came under my line management. Had to fire them for gross misconduct, and got given hell from the boss for not ignoring all policies, the impact of their behaviour and the fucking law.
Boss 1 (again): Was line manager of the line manager of the rest of the team. Team manager had anger issues and played favourites. But... He was continually undermined by the boss on his decisions. He might have made a decent manager if left to it, but became frustrated, which made him even more of a douche. Ended up with toxic atmosphere where people yelled at each other with impunity.
Boss 2: Manager has been on receiving end of pass agg behaviour and refusal from one of her managees. I've witnessed that myself. Line managee quits, and boss apologises for everything and begs them to stay, even though all the manager was only asking the managee to comply with basic standards. Manager now stressed, undermined and demotivated.
Tbh, soft management makes me so mad, because I have tonnes of experience of it causing havoc, and making people second guess themselves, and say, "well, x is a nice guy...". But I find it mega bullshit, because I find these types gravitate to those that they THINK need the most support, and ONLY them. They never look at the bigger picture, and be fair. A nice environment is a benefit to everyone.