I have heard the argument that it's a good "marketing tool" for teams that have no obvious tangible deliverables (e.g., devops) to demonstrate all the work they do. This argument rings hollow to me, but I thought I'd ask y'all.
The smarter groups I've worked with will begin to ask about tracking time for standups, department meetings, company all-hands, lunch, interruptions from management, etc. The fractal nature of work reveals itself and everyone backs off time tracking really quickly.
It becomes evident pretty rapidly that the thing that costs the most is interference from management itself. That gets swept under the rug