Is it possible to be 'too nice' in social interactions, especially with people you've just met or are casually around (like coworkers, friends of friends, or at parties)?

For example, I've been told I play it too safe- like saying 'thank you' every time someone does something for me but not building on the interaction. For me, it feels like if I don't express some form of verbal gratitude, I'm not properly acknowledging their contributions, and it feels awkward. But at the same time, saying 'thank you' or something similar 7-8 times a day can also feel overdone and unnatural.

Can being overly polite or cautious hold people back from forming stronger connections? I'd love to hear your thoughts and experiences.