Seems like engineers are not trusted to do their job. I mean if you hire lots of inexperienced engineers, fair enough, but I certainly wouldn't work at Pivotal.
If my PM was constantly worrying about whether I was distracted, or working on something outside of the backlog, I wouldn't be too happy about that. As an engineer, part of my job is to prioritize my daily and weekly tasks, and to avoid getting distracted throughout the day. Unless their is a hard deadline coming up soon (in which case it is helpful to check in with the PM so you know what to cut), requesting status updates on stories on a daily basis seems like way too much. If you want a window into what I am doing, come to standup (which should be async most of the time anyways, IMO).
I've worked at a company founded by people from Pivotal, with a very similar culture, and I'm not very surprised by this post. There were a lot of new bootcamp grads and more inexperienced developers, so the company didn't really give them the same freedom that developers are used to. Everyone pair programmed all the time, even when doing basic UI work (super exhausting), working hours were fairly strict, and work was broken down fairly finely. For better or worse, developers were treated more like just people who can write code, for the most part, rather than people who are able to intelligently prioritise tasks and take initiative on things that need to be done.