This is one of those stories that I am sure has happened, but when it comes to "and then they never asked him again le XD face" it's clearly just made up.
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At that time at Apple, even as an IC, Bill had lines of communication to Steve and was extremely valued. There's absolutely no doubt he could get "middle manager shenanigans" gone simply by not complying or "maliciously complying". Hell, I've seen ICs far less valuable, or even close to negative value get away with stunts far worse than these, succeed and keep their jobs. Out of all the stories in Folklore.org, this is the one you have an issue with?!
The outcome where all of a sudden leadership just shit its pants and doesn't communicate at all and never followed up... It's like writing "and then everyone clapped" for programmers.
This is not only a possible outcome, it is a common one. When leadership realizes it was a mistake to instill one of these types of "productivity motivators", it is easier to disappear it and never (officially) speak of it again.