A lot, let me enumerate: (1) Poor management who enjoy criticizing/ranking people for their own ego, (2) Looks down upon other similar FFRDC like MITRE, who is doing much better than MIT LL financially, (3) Bears name of research, in fact, doing the same acquisition job as other defense companies, (4) Generates superficial ego within each employees that they are better than others, (5) Group Leaders have too much power/authority to judge an employee, for some cases, employees were treated with abuse and intimidation, with nobody to turn to, (6) It is only a good place to "have been" for normal people.
Note: This was just my real experience, and the experience of many of my colleagues at the time.