Unconditional positivity destroys moral, but I think the effect on psychological safety is more nuanced. Your example is certainly a lack of psychological safe

Unconditional positivity destroys moral, but I think the effect on psychological safety is more nuanced. Your example is certainly a lack of psychological safety, but only you can speak to the causes of that. A common reason would be a lack of accountability, which led to unconditional positivity as a veneer over the lack of constructive feedback.