Earlier quoted context omitted.
We can’t even push to a git repo unless it has a linked work item/story/task/bug. So, in order to say, upgrade packages or refactor difficult to read code, the work item needs to be approved by a non-tech PO. Guess how much gets done outside of planned/micromanaged? Answer: next to nothing.
That definitely sounds broken. I have a hard rule with my PO: 30% of the sprint is mine (read: the team's). He only gets to schedule 70% of the stories according to his priorities. I use that 30% for tech debt, primarily, but sometimes for spike projects and other things that interest us.
I've found compliance makes it harder to write good code. If you get a PR approval with optional suggestions you're heavily disincentivised from actually addressing those comments since if you push those changes you now need to wait for review again.
Like everything process and compliance it's designed by low-confidence managers with an inate distrust of their teams.