Does it? I’ve seen Ezra Klein talk about his book and he talked about how bureaucracy is frequently a scapegoat for getting things done. Europe is very bureaucratic yet is able to build. The issue he called out is red tape yes but more so litigation by the private citizen. That any individual can stop an apartment being built because it blocks morning light into their flower bed
They're made possible because all but the most frivolous lawsuits are not disincentivized, but are in fact tolerated as a tacit, systemic feature by the state and the bar association. The example given is a stalling tactic. Stalling tactics also exist in China through property rights, it's a weird thing to hold up as contrast. Having a right to the house you own is such a fundamentally important thing to have in a society. That it can be abused because bureaucracy will tolerate it out of epistemic humility doesn't change that fact.