Eventually I came to this explanation: their culture is obsessed with perfection, from perfectly paved roads to perfectly preserved temples to perfectly presented food, etc...but this pursuit of perfection in the hands of bureaucrats leads to processes where everything is captured in detail, approved by multiple people, etc. Basically, in the eyes of a bureaucrat, 'perfection' is a rock-solid paper-trail rather than a frictionless experience for the citizens.
This is a problem in many formal, detail-and-rule-obsessed cultures. Germany, like Japan, is lauded for its industrial engineering/manufacturing — but has the exact same hilarious obsession with government paperwork.
Meanwhile, more creative and permissive cultures — like say, Sweden (outsized influence on global fashion/culture/tech given its size), have far less paperwork.