Yes I've certainly seen and worked with some inept useless managers who haven't got a clue. Love the ones who try and tell you how to do your job.
I have a cousin who used to work as an admin for a local council and was on the way to management, the guy above him retired and someone else moved in. My cousin was constantly knocked back, heavy workloads were moved to him out of the blue, very unrealistic things were expected of him. He suddenly found that he went from enjoying his work to hating it, a complete 180. It was entirely down to the new guy in charge, he didn't like that Bob (lets call him that) had shown initiative, he didn't like the idea that Bob might rise above him one day. This was basically confirmed, my cousin overheard him giving these reasons, and while anecdotal on my behalf in this thread I have no reason to doubt him. He moved into a different sector and has since done extremely well for himself, he's living in the north of England (so low living costs) on an 80K a year wage. Wouldn't happen in almost any other industry, there's generally too much accountability for things going wrong.
A move can do you a world of good.