I think most reputable coaches recommend diet breaks at certain intervals. Partially so your body can resensitize and partially for the mental aspect.
What I found with my weight loss (started at 240#+ in Nov '18, down to 191# in Jan '20), is that I can pretty easily lose weight at a rate of 1.5-2#/week for a while. But once I'm past about 15#, it starts to slow down. By the time I'm down 20# on a cut, weight loss slows significantly. So I've been doing 12-week massing phases after each 20# loss.
I tried to just continue and push past the weight loss plateaus, but without a ton of success.
Late last year, I cut for 5 months, ended the cut on Jan 31st. Initially, it was 2#/week. By the end, it was maybe .5#/week, if that. Lost 25#, but by the end, i was fried.
Did a 12-week bulk (12#) and have now been doing a moderate cut for 4 weeks. Lost 5# in those 4 weeks, am now as lean as I was at the end of the last cut, despite being up 7# from then. I feel way better, still feel like I can cut several more pounds without issue.
The disadvantage is that it's taking longer overall to lose the weight, but it's much more sustainable in the long run.