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Most full-time contracts have exactly that clause, you can safely assume that theirs did.

That employee also likely assigned all IP they created during work hours to two companies.

Not in my experience. I've worked one salaried job for over a decade alongside other salaried jobs. I let my employers know (and ensure them my long-standing job won't affect my other one), and also checked the contracts to be sure I'm all good.

obviously no one has issues with this scenario where both employers know. but the recent overemployed scheme where you get multiple jobs, do nothing for months while taking advantage of remote & people understanding that it takes time to get started, then look for a new job once you get fired from one - that's clearly abusive & wrong

That's pretty surprising, maybe it varies by region? Are you in the US? Basically every full time contract I've ever seen has it. I'm currently writing a new one for a different company in a totally different field, using a default template, and the template has it too.

That's not to say that some employers wouldn't be OK with it, just that it tends to be thrown in by the lawyers because why not.

I only worked at one company that explicitly forbid me from being employed by another company.

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