Is it ever acceptable to sell portions of one’s 401k and just pay the penalties?

Like the title says. If a person had a really good 401k plan through their employer that allowed them to have a brokerage link and that person took their “over funded” portion of their retirement a few years ago and bought stock that has now made them 8 million dollars in their mid 40’s, is it ever reasonable to petition the plan administrator for a special exemption or to quit their job and take 6 million of it and just pay the penalty? This person would still have 3 to 4 million currently in their retirement which is technically still “over funded”. They would however fundamentally change their life. It doesn’t sound unreasonable to me, but I have searched the internet and can’t find any particular discussion about a scenario such as this. It appears the penalty would be 20% LTCG plus 10% penalty which is still lower than a high earners marginal tax rate. I am just curious what this groups thoughts are on this. Thank you.