Tracking time is often a contentious topic; your view depends on your role, your business objectives, and your understanding of the desired outcomes.
Different organizations will have various reasons for tracking time. Services organizations doing Time and Materials (T&M) billing use the data for invoicing customers. Fixed-price bids rely on a clear understanding of the expected effort required to ensure desired margins. Accurate actual hours numbers are critical for financial success in these companies. Different stakeholders within an organization will also have different uses for the data. Executives may want to confirm that resources are working on the desired mix of projects (Keep the Lights On, Innovation, Discretionary Projects, etc.).
Information about actual effort is vital to business operations for a variety of reasons, but it’s only valuable if the data is accurate and trusted. The level of detail needs to be aligned with what was estimated. At the same time, it can’t be so granular that time trackers think you’re monitoring bio breaks or causing them to spend more time finding the right task than doing actual work.