Is there a thin line between loyalty and stupidity?

Phoenix1991
The title is a quote I used to hear from time to time but I never truly understood the phrase. The other day I was talking to my friend about this, she said its true. Her example is Relationships and Jobs.

She went on how people tend to always try to stand by and expect things to workout if they remain loyal to someone as a friend even if their friend talks shit behind their back and steal from them yet they still call them their friend.

Example: Guy A works 8 am to 8 pm at his job everyday, Everyone loves him, he is the first person to come in and the last person to leave for years. Guy B comes in barely on time, isn't as friendly with all the other workers. Both Guy A and Guy B have the same skills yet The promotion goes to Guy B, Does that mean Guy A was naive and stupid?

Things like this happens often, Is there a thin line between them or not?
Yea, there is a thin a line.
No, not at all.
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Is there a thin line between loyalty and stupidity?
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