This is a complex topic, but it's a bit simpler when outcomes are bounded, such as a binary outcome that either occurs or does not occur. In that case, the impact of any one factor is bounded.
In the scenario you're describing, this other factor drowns out any influence the treatment has on the outcome. You'll struggle to get a statistically significant result (low power) and the confidence interval on the treatment effect will include 0. This too can be a valuable finding: sometimes the answer is that the treatment is not particularly effective.
In the scenario you're describing, this other factor drowns out any influence the treatment has on the outcome. You'll struggle to get a statistically significant result (low power) and the confidence interval on the treatment effect will include 0. This too can be a valuable finding: sometimes the answer is that the treatment is not particularly effective.