I manage at a company that has this process (and a few others).
Frequently, the Agile process is just a way for the developers to get more time to do less work IME. It works best for maintaining an existing well defined program than it does for development of something new.
It is also used as a substitute for program management tools ..... which it is not. Projects still need gant charts, critical paths, and resource leveling across multiple projects .... something not in the field of Agile's process.
As for the original topic .... remember, any software that is putting its fingers into the Kemper in real time must be put into a gated community so-to-speak. It can't be allowed to cause harm to the device, or introduce failure paths that would not normally exist.
I am the Chief Engineer at my company. I have to tell you guys. I would never approve of this idea for any of our products. It has "bad things to happen here" written all over it. I suspect the FMEA (Failure Mode Effect Analysis) alone would occupy the engineering team for a month. Then you could start working on the revisions to the design needed to fix all the failure paths found...... in other words, it is a much bigger deal than most of you are thinking it may be (at least IMHO).