Why do you force applicants applying to Automattic to do something that violates the company's own conflict-of-interest policy?

Automattic's draconian conflict-of-interest policy is well known in and out of the organization: https://news.ycombinator.com/item?id=20831965

We are not allowed to do outside work at any time during our employment without legal approval, including things as basic as part-time DOG WALKING (I won't ever forget that town hall debate). We have to shut down our money-making apps, are not allowed to do any type of consulting or freelance work, and are essentially barred from doing any kind of for-profit behavior without lawyers getting involved.

And yet you require your applicants to do paid work in their off-hours to even be considered for the job? How is that OK?