People don't recognize it as such because the LOC -- lines of code -- has an added time dimension now and a different name. In Agile / Scrum it's K-(issue/day) where issues take the place of raw lines and the metric is applied per unit of sprint duration.
But same idea, and same fallacy. It results in gobs of ugly Rube Goldberg machine code that's slow for fundamental O(crap) reasons and bug-ridden.
An org that calls what it does "agile" or "scrum" and then proceeds to accumulate technical debt like the Titanic taking on water is lying to itself about what it's doing. Piling up technical debt is a textbook Agile(flavor) failure, full stop.
What sounds like happened in the case(s) you describe is that someone with dev management preconceptions wore "Agile" like a wolf in sheep's clothing and proceeded to dole out the same old ad-hoc nonsense. Nonsense as in being "efficient" (high KLOCs/metrics, butts in seats, long hours, etc.) and not caring about being "effective" (working on the right problem vs a problem, necessary understanding of the company and customer needs, working smarter vs. simply harder, etc.).
I've seen this attitude a number of times, e.g. in program managers with history in big, established s/w companies. They learned a certain way of working, but then talk "Agile" as the trendy hire-word. Unfortunately, some of these folks never gained understanding of the tools that Agile brings to the table, and when/how to apply (or not apply) them to a situation.