Much more motivational than being turned down by Harvard...I seriously doubt he's lying, given that he failed middle school/high school/college exams multiple times.
I had real troubles with school, and jobs where I had no interest in, luckily I tripped into an industry I enjoy working in!
The fact is we don't know if the story is true first or why the KFC manager rejected him. Perhaps the KFC manager spotted that a guy like Jack was not simple enough or was to motivated or intense to stay for more than a week at that job. Not unusual for any company anywhere to reject people they feel are overqualified for a particular job for any number of reasons. Just because you tell Apple or Google you would be happy to start sweeping floors with your masters degree in computer science doesn't mean they are going to offer you a job doing that even if you would do a damn good job cleaning those floors.
Or he could be full of shit.
I like how interviewer called him out when he was talking about how inspired he is by Hollywood - that in reality he is looking to do business in Hollywood, not reach enlightenment.