I've worked mostly in Silicon Valley. At bigger tech companies I found that the minimum level of competence is a bit higher, maybe because of the aggressive stack ranking and PIP/firing pressure. At small companies either low bar is very high, or it's nonexistent, I've seen both.
The weird thing is, at a high performing organization it's relatively straight forward to get a job: be very good at what you do and practice for their hiring process.
At a dysfunctional organization there's not really a way to get hired (apart from an internal recommendation). This is almost by definition, as their hiring process doesn't measure anything reliably. Being physically attractive or charismatic helps a lot.
Actually this gives me an interesting idea, can you measure the quality of an engineering team purely by how ugly they are? My hypothesis is that a dysfunctional team has a low ability to measure aptitude, and so things like physical attractiveness will have a higher impact on hiring decisions.
I don't blame you for wanting a nice stint in one of these dysfunctional companies, I think I could have worked an hour a week and been praised as a top performer at the ones I unfortunately spent time at. I think if you do go this direction you should get 2 or 3 such jobs. It's only a tiny bit more work, and these companies tend to just stop existing some random Tuesday.