I have been part of organisations famously followed Spotify Model that even Spotify themselves not following it. Maybe this has been an easier way to frame the good old practices for a new shinier HR policy. Maybe this has been a way to keep people entertained when they suffered from communication overhead too much. Whatever the reason was originally, the outcome is like mentioned below, ending too many small subset of original business value.
Too many interdependent “two-pizza teams” is absolutely the wrong way to scale an organization.