It results in a brittle nightmare because you can no longer change any of it, because the responsibility of the refactored functions is simply "whatever the orignal code was doing before it was de-duplicated", and don't represent anything logical.
Then, if two places that had "duplicated" code before the refactoring need to start doing different things, the common functions get new options/parameters to cover the different use cases, until those get so huge that they start needing to get broken up too, and then the process repeats until you have a zillion functions called "process_foo" and "execute_bar", and nothing makes sense any more.
I've since become allergic to any sort of refactoring that feels like this kind of compression. All code needs to justify its existence, and it has to have an obvious name. It can't just be "do this common subset of what these 2 other places need to do". It's common sense, obviously, but I still have to explain it to people in code review. The tendency to want to "compress" your code seems to be strong, especially in more junior engineers.