Yes, absolutely it says more about their limitations or concerns than it does about your own! Unfortunately a mismatch in expectations is probably a reasonable

Yes, absolutely it says more about their limitations or concerns than it does about your own! Unfortunately a mismatch in expectations is probably a reasonable (but not good!) reason not to hire. The hiring party gets to choose, and if their choices are for what they think are local maxima that you don’t fit, they get to own the consequences of not hiring you.