It’s literally selecting for people who can tell the best stories. Not great for any company dependent on moving fast with autonomy, with a genuine mission.
Plus “looking for grit” really means “looking for someone to work long hours (typically without good odds of realizing fair equity)”… super unethical to even attempt to be selecting for people with trauatic and toxic Pasts.
If they wanted to select candidates for learning quickly, being adaptive, whatever… just test for that.