Phase 2.2: The Bureaucratic Nightmare
Where Phase 2.3: The Wrecking Ball comes in is when the team realizes that the project is a lost cause, but still somehow manages to plod along. The team's morale is in the dumpster, but the coffee machine still somehow works.
At this point, the team has given up on any semblance of hope, and just goes through the motions of pretending to work. The only thing that keeps anyone awake is the constant stream of meetings, and the occasional shouting match between team members.
Phase 2.3: The Wrecking Ball: where the project is just as much of a disaster as the team's haircuts.