Wouldn't that just be another attack surface? Chances are some of those rotated passwords may be used in other sites and this just exposes the company and the user to additional risk.
It gives added incentive to the company to make sure all of their internal passwords are managed via SSO so the users don’t continue to use a password on non-integrated systems after it’s rotated centrally.
And as long as employees are warned in advance, they should be aware of the risk of re-using passwords, which already exists today. If anything, this highlights the fact that if employees are using their company password for some other service, they’re placing their employer at risk.
I generally use unique passwords for everything, but I worked many years at a company with a 3-month password rotation policy, and coming up with high-entropy yet memorable passwords was sufficient work that many accounts on machines on my home network used some retired passwords from there.
Not to mention insiders that are bad actors.