System Designers love this saying. The point is, the goal of rules is to incentivize certain thinking and actions in the player, so in turn it creates an experience.
For example, a very lenient combat system where hitboxes can be hit easily and the player has a lot of margin for error will create a more leisure pacing and thus you can, if so you wish, expand on other aspects of the experience like very long, spectacular animations (Kingdom Hearts, Devil May Cry).
On the opposite, if you focus on very punishing and strict rules for your usage of hitboxes, your are emphasizing focus, attention to detail and a huge importance in the environment or your own resources (Elder Ring, Ninja Gaiden).
There are no universal rules for this, because this aspect is tied to the vision of the game. However, for the same reasons, it is paramount that this vision is clear and the team understands it well in all departments.
For example, a fighting game must have very finetuned hitboxes and character animations as this is a genre where the animations define in no small part the shape, range and delivery of the hitboxes. Thus, the Animation and Technology departments must work together with the Game Designers to ensure the tools allow for this and art direction fits the gameplay. Producers must be very aware of this to ensure they don’t work independently and then collide on goals later.
This is in part what a clear vision ensures.