I would imagine this happens a lot in larger corporations. In any well run business were managers are primarily held responsible for efficiency and productivity above other goals (and bureaucratic bloat) no one will be interviewed and promoted to a job that does not best serve those interests, particularly that manager oversees both the position vacated and the one being filled.
That’s what I’m noticing. Most of my career had been in small, family run businesses until a few years ago when I joined a giant. This seems to be quite common.