Can confirm: will easily pass over candidates that lack self-esteem and confidence, even if they possess strong technical backgrounds. Nobody cares that you can program in C, they just want to know if you're going to be a dick to work with and whether you're actually going to get shit done.
Interview anxiety does not mean lack of confidence or ability to get things done. It is an issue more related to social settings for many people who are otherwise enormously productive and smart. The point is that this interview style definitely misses lots of qualified individuals while it can also accept talkative people with outsized egos, which is also a problem down the road.
