This is my first encounter with this type of behavior, as it has never been present in any other company i've worked for.
While "Trusting the Team" is a wonderful philosophy, i often wonder when this boundaries into naivety
Unlike many posters here, i feel a great deal of sympathy for my leader. A great person who got played by an overwhelmingly toxic and manipulative subordinate. So much so, that taking action against this tumor is now more damaging than it's worth.
Meanwhile our other team lead can't even find time for growth as they're constantly having to engage in vocal banter/office gossip or babysitting this worm. And this particular team lead also happens to be an all-star player. Perhaps this is a result when an advisor flunks out and decides to work back office?
All while the rest of us do actual work - and fortunately for me, i'm a workaholic.
But it's still fascinating to see, could be an interesting case study some day. I'm sure they'll be promoted at least a few times before their toxicity is made obvious to all.