Yes, nukes would be bad to give control to an AI with no workaround. But so are customer service groups of fraud departments at banks. A kafkaesque hellscape is where a customer or beneficiary of your service cannot get the help they need by policy and by design. Like getting Google on the phone, getting a non-scripted human 10 years ago in a call center, or now getting a non-agentic interaction on the phone. The scripts dominate the interaction.
The IRS, for a time, would cut off your call if their wait system was too busy. That's a critical system in kafkaesque hellscape.
Kudos to zlandes86, you have highlighted WHY these hellscapes start to pop up in systems where the human is removed.
I am an AI user and builder -- I fully advocate for the human-augmented system, NOT the human-replaced system!