One of the founders children was hired on to a low ranking managers team as an entry level Software Engineer. They were hired specifically by the low ranking manager and without the typical interview process. That low ranking manager, inside of a calendar year, became the director of an entirely new division in the engineering org. That division eventually went defunct, having never shipped a single product to production or having accomplished anything else of note.

The other was a founders child being promoted from SE I or SE II into a middle management role. That also did not end well.