Happened to me a while back, I lawyered up and it was expensive but the best thing I ever did as together we showed how the selection process had been gamed by my manager, presumably an act of self-preservation or a sacrifice to make them look good to their manager. In the end I decided to walk anyway despite being offered alternatives. Here I am now somewhere else being paid far more. I would never go back. It was a very traumatic process, like being accused of a crime you didn't commit, but out the other side the sky is blue and all is good; if you were selected unfairly... Look forward to a better future elsewhere but do make an effort to get to the bottom of the process to expose them.
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@OP What was the conclusion after it was exposed?