That was one of the main topics of the video, yes, but the rest of it looked at some research into how to address it. One study showed that just promoting people at random had better outcomes, and a separate study showed that "up or out" was also effective. I would guess that the choice between them is mostly about the culture of the organization
I'd like to read that random promotion paper. I wonder how high up they actually implemented this strategy, because the idea of the CEO just being the person that chosen at random more than anyone else is hilarious to me.
My mental model is that "promotion" is something that only happens to middle managers; board relevant seats are either appointed by the board or come from the good ole' boy network (which I do recognize is almost certainly worse than promoting a bad manager from within, who at least has existing relationships and business context)
Relevant: https://nebula.tv/videos/coldfusion-why-are-managers-so-bad-... (or https://www.youtube.com/watch?v=m7-UdDg5uIw if Nebula won't show it to you)
The tl;dw is that quite obviously the years and years spent learning one skillset absolutely does not translate into the ability to "debug humans"