Thank you for including a FUQ. It is respectful of others to do so.
I think "psychotic" is a bit strong. These zero-tolerance rules are at least neurotic.
The reason for zero-tolerance rules is that our society no longer trusts its professionals to make decision. We have turned all of our professionals from teachers, to doctors, to engineers into unthinking bureaucrats simply following rules, without any common sense, knowledge, experience, or professionalism applied. Instead, there is a matrix of specific actions that must be taken is specific situations, and these "professionals" are expected to follow the matrix without question, lest they be sued for daring to be a true professional.
Professionals are supposed to be educated to be able to exercise judgment in situations that are new and unique. They are not supposed to be trained to do very specific repetitive tasks.
This is an unintended consequence of a legal system gone wild.