Regardless, yes, it’s bullshit and harmful to equity in hiring. I’m certainly not defending it.
Since we’re on a site run by YC, I should note that a version of the same “record a video” requirement is part of the standard YC application, with some of the same downsides for equitable venture capital investment decisions. Of course, a big difference is that venture capital investment decisions are entirely outside of the scope of discrimination law as currently enacted everywhere I know of, despite being very close in effect and power dynamics to hiring decisions in an employment context.