I could see it having more implications than just measurement error reducing power. It's entirely plausible that a drug which has an effect on Alzheimers would come with side-effects that would damage those who just have senile dementia; imagine a drug which dissolves amyloid plaques while doing some moderate damage, in a trial with a mix of dementia and Alzheimers, the Alzheimers getting better is masked by the dementia ones getting worse, for a net average zero compared to the placebo group.