You're not even exaggerating. I worked as a contractor some time back for a major Canadian telecom company that no longer exists. I remember spending hours of meetings on calls with no less than 10 stakeholders (and in some meetings senior management) "circling back" to get a decision on button position. Not a single one of these people were a designer/UX person. I'd imagine it's even worse in the public sector.
There is probably some fallacy to explain this. My intuition tells me that if you have meaningless job (or you feel as if) you tend to make big deal out of small decisions, assert your territory of control/reign etc.
This leads to what you described. I guess it also offers an easy cop out for them if the button will be placed in the worst possible way. "Since Jerry was also on the call and I always thought he has final say."
