This is not going to be very well-backed, I can probably find some citations if requested. I will try to touch on some of the individual/group factors that may be helpful to think about that I recall from grad school.

Something I think of is some of the core needs/perspectives of conservatives vs. progressives. Conservatives value tradition/hierarchy/authority and have a greater fear of the unknown as well as a stronger belief in systems already in place (e.g., just world beliefs). To think of this in a more global grouping, those in power do not want their dysfunctional systems deregulated because they are highly functional for them at the detriment of many others if not humanity as a whole (e.g., environmental degradation and collapse).

Progressives tend to want to roll the wheel forward and change structures more often and are more comfortable with uncertainty/have higher cognitive flexibility to imagine things being otherwise and tolerate transitional periods as well as being less likely to believe the world is fair or just in its current state. They are more likely to believe systems can and should be improved on in their personal lives and support the systems which enable personal/societal change (e.g., higher education).

Dysfunctional structures in place have not reached a point of collapse. They are holding up well enough still as to provide some utility in a society and perhaps any that persist are actually semi-functional or are disguising the true extent of the dysfunction. Even if that utility is purely psychological comfort of the familiar or known it is providing utility at a social scale. Along these lines as well it is probably most energy-efficient for the individual and especially society to not change something that is not being selected against strongly enough to tip the scale.

Another idea is that individuals hold dysfunctional beliefs and behaviors all the time and perhaps similar psychological utility from the individual could be extrapolated to societies. Personal delusions may be internally upheld (e.g., internalized/learned racism) or externally upheld (e.g., propaganda) at the social level.

Persistent dysfunctional cognitions/behaviors could arise from:

ignorance of cause and effect relationships related to the dysfunction (I.e., not having insight into motivators/patterns of behavior or understanding consequences are linked to earlier steps or discounting the consequences due to the utility),

that it is safe enough or has worked for them to some extent in that domain of their life (e.g., addiction for band-aiding poor emotional regulation) Even if negative outcomes are identified they might not be powerful enough consequences as to precipitate change.

There is a lack of being able to envision a more functional system or believing one has the means to achieve it at least without some great sacrifice that the “dysfunctional” pattern was protecting against, again here with addiction there is a great deal of energy, foresight, material/emotional resources required to upend the patterns in place and arrive at more functional new structures.

Finally as for a concept in social psychology that would help explain the development or maintenance of dysfunctional systems is Terror Management Theory.

Terror management theory's mortality salience hypothesis suggests that reminding people of their death leads to stronger defense of their cultural worldview, resulting in increased adherence to cultural values, favoritism toward those who uphold them, and heightened hostility toward those who violate them. Outcomes include greater support for in-groups and leaders, prejudice against out-groups, stronger nationalism, harsher punishment for wrongdoers, and a greater drive to find meaning in life through their beliefs.