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It's a thing I've taken into account when hiring before (for a managerial role, not as an individual contributor). We didn't exactly treat it as 100% ruling them out, but it definitely counted against them.
Which unfortunately helps create a double standard where better candidates can get away with more, but especially with a manager it's important to get a sense of their character and "I worked at a bad company and don't seem to mind that" is evidence of that.
