This would be considered absolutely batshit at all three of the R1 research universities I've been around, which spans a significant range of prestige.

I think it goes to show how much variance there are in PhD programs. I frequently advise undergrads to find the right lab (i.e., a lab that doesn't have such a competitive environment) instead of picking a school based on some other criteria like prestige, but this is far easier in hindsight. I got super lucky -- a small lab with a good advisor.

Maybe (in addition to a strong union) we need a "Yelp for labs" where advisors can be penalized (or recognized) for their behavior. If it were publicly available and student testimonial could be somehow verified and anonymous (potentially impossible), I bet administrators would put at least some pressure on problematic PIs...