The worse problem is that the stack of UML diagrams in 1. is sent offshore to be implemented verbatim by many junior people working in parallel and in isolation

The worse problem is that the stack of UML diagrams in 1. is sent offshore to be implemented verbatim by many junior people working in parallel and in isolation, a manual test team produces thousands of bug reports on the resultant ball of mud which are then hastily patched over with sticky tape, and the whole sorry mess is hailed as an exemplar of software delivery process for being made to hobble over the line without exploding.