When does adding "one more feature" start hurting your core product?

Early on, every time a user asked for a feature, we put it on the roadmap. We thought we were being customer obsessed. But a few months in, our clean dashboard turned into a cluttered menu, and new users started dropping off during onboarding.

Stripping back features felt terrifying because we were afraid of losing active users, but keeping them was confusing every new signup.

How do you decide when to say no to feature requests? Have you ever had to sunset a feature to save the core user experience?