Just thinking out loud on the pros and cons;
Pros:
1. If a copy of the file is provided it is some sort of guarantee that the file is not lost
2. As they are supposed to provide all notes/reports as well, the applicant might have a better understanding that for what reason his/her application is delayed based on prepared reports.
3. If department gives a file with dates marked over it for all reports this might generate a pressure on them that later applicant can go for a judicial review and present it as a proof that if the file was complete why it didn't move along later.
Cons:
1. You disturb daily relax routine of a public sector employee by making them do extra work, they can intentionally delay it to make you suffer.
2. your file was removed from the pile of files which were ready for submission to make copies and then it gets lost at some other desk and/or placed last in the queue.
3. They might not give all reports/documents about your file and given copy is nothing more than what you already submitted but you still have to deal with the above two cons anyways
. But if this department is not capable of clarifying their doubts in a reasonable time, it is total inefficiency at their end.