I think the problem here might be worsened because Valve has been in the same office since forever.
Studios like Bungie and Sony Santa Monica do the same thing but they are in large buildings on their own and had the buildings renovated for dealing with large groups like that.
Valve on the other hand is 3 floors in some office building in Seattle cramming everyone into every gap they can.
For example Valve.
Low Ceilings making things look more cramped.
Desks packed together in a unorganised manner.
Sony Santa Monica Studio (old building but the new one is basically the same idea)
High Ceilings making the work area less claustrophobic.
A decent amount of Free space
Workstations not practically on top of one another.
Cubicles for people who want a bit of privacy.
Maybe Valve need to move to a better building.
You would think with all the money, resources and free time Valve has, they could afford a decent and clean open office space like SSM has in that picture.
Valve definitely sounds like a really shitty place to work in. I really don't get them.