Can a recording be “too perfect?”
The ultimate test is a live solo instruments IMO in that case the answer
'Can A Recording Be “Too Perfect?”" be no.
Depends on the context and purpose of the recording.
A recording of a live Hammond B3 organ can never do justice to being in ones presence live. To capture a solo violin realistically a stereo mike set up and a revox reel to reel can get close.
some of the finest live classic Jazz recordings are still stereo miked tape.
So a lot depends on the meaning of too perfect.
The term "over produced' might be a better term to use.
The answer is yes it happens many times and always has.
the best artists when to stop...I think Picasso said that one.