I believe the principle is fairly easy to understand: imagine you're missing two fingers. Because kids are cruel, your middle school experience involved lots of shaming and name-calling, and that really got to you at the time.

Everything is fine now, because nobody actually cares. But then along comes this algorithm and, for some reason, it crops your profile picture to be just that hand of yours. Of course one or two "friends" from middle school are following you on twitter, and start reminiscing about the times they called you three-finger-bob.

Is it conceivable/realistic/justified that this would, at least for a while, hurt?

Meanwhile, for someone who didn't go through that experience, the algorithm doing the very same thing is just... a curious bug?

As to how they are going to score this: it cannot be scored only quantitively, as they specifically say in the description. They are going to read your hypothesis–something like the above, but maybe a little more serious–and score it, probably along a a few categories and by a few different people etc.