Say there are a couple hundred servers in various games they're observing and participating in (not an absurd number given that one person with a 40-hour week could play quite a bit), it's reasonable to assume multiple agencies might overlap servers.

Well, I was just hinting on overspending: if a few agents are watching one target it's miscommunication and mild overspending, but when there's a whole "deconfliction group" it's overspending squared.

Aside from overspending you might want to look into existing BATF sting operations. If the majority of the criminal activity in an area is law enforcement sting operations trying to catch the small fraction of actual criminals, then you need a deconfliction group or the vast majority of arrests will be law enforcement agents arresting each other.

Imagine if the city cops decide to crack down on prostitution by posing as johns in a sting, the same night that county sheriffs decide to crack down on prostitution as prostitutes in a sting, and the streets are 90% full of cops arresting each other. LOL all you want, this has happened IRL, also with drug trafficking. There is also something of a meme that the majority of underage girls on chat services are creepy FBI agents.

Yeah, it's bureaucracy gone wild: one criminal per fifty employees. But I guess it's even less than so in this case: no convicted criminals, so many agents that a "deconfliction group" (how many employees were in that "group"? 3-5? 10?) was needed.