Unfortunately from an organizational perspective, a bad hire could cause so much damage through incompetence let alone malice, that making no hire the default unless they're a perfect cinnamon roll of a fit, is actually a good strategy.
The fact that an organization cannot deal with such a case is a bigger problem in the first place. Eliminating incompetence and malice is among the basic skills of an organization.
Of course the organization should do its best to avoid bad hires. It should do so because of the opportunity cost of not hiring the right person, not because of the damage that they might give to the organization.
In light of this kind of threat, strongly favoring no hire, and even policies like mandatory on-prem work, start making a whole lot of sense.