It’s not a vacation if you can’t choose when to take it.
It's not all that different than several companies that I worked for before remote work was possible that would close their offices in the winter if the roads were too icy to get to work safely.
They claimed they were shutting down the offices to keep workers safe and not make them come into work and they could either use their PTO or take an unpaid day because back then, you couldn't really work from home when the Internet was dialup modems and bulletin board systems (BBS's).
Given that we get 4 weeks PTO every year, asking us to take 1 week at year end isn't that big a deal. You still have 3 weeks to use any other time and many people take the end of Dec off anyway.
Personally, I like it because I usually wanted to take the last 2 weeks of Dec off anyway and when we weren't shut down, we had to rotate through the team who got to be off the days surrounding Christmas so that the same people didn't get stuck working every year instead of being with their families. I used to burn a week in the summer, a week at Thanksgiving and two weeks at Christmas. Sometimes I'd do Spring Break instead of Summer, and now it's Spring Break, Summer and Christmas instead of including Thanksgiving.
Initially, I thought it was better to just mandate x number of days off in a given quarter and let people decide when to use it, but when some teams work and they 'need' something from you and try to reach you while you're on vacation because they need it now, I like that everyone is off at the same time.
The first year they did this, back in '08 and gave us something like 30-45 days notice to use a week during Q4 (May-July) and people had already pre-paid for fall trips and their kids were in year-round schools and didn't have any weeks in the summer where all their kids were tracked out at the same time really caused a lot of people difficulties. Now we all know ahead of time that we're taking Christmas Eve to New Year's off every year, with the potential for a few extra days. Besides, we've received a lot more than 3 "Days for Me" this year that didn't use any PTO. I'd rather have a nice big contiguous block of days off for a real vacation than a bunch of 3-day weekends that I can't really make use of wasting my PTO.
Be thankful you have PTO. All the red-badges are being furloughed for 3 additional days with no pay. Just think how they feel about this.