As a relatively junior person in management, it is amazing the kind of phantom fears I've been cautioned against. Some of which don't even have any legal precedent at all!
I think a lot of it is trotted out as managerial "emergency hypothesis" for why someone doesn't want to do something, and so invents some plausible legal risk to justify their decision. But, honestly, it can't be only that.
We see Most Available Excuses in product feedback ("it's too hard to use" is easier to say than "I didn't see how this would help me accomplish anything I actually care about"), in social engagements ("sorry, too busy this week"), and many other areas.
I'm a natural skeptic so I maintain a mental set of Most Available Excuses, and when I hear one I treat it as a dodge, not an answer. Why don't they want to do it? How might I make them more comfortable with me so they can explain how they really feel?
I'd be very cautious with this approach. Politeness is an extremely important social defense mechanism for most people. By ignoring the standard polite response and trying to get at the truth you're undermining a person's attempt to save face. By doing so, you're attacking their autonomy and agency as a human being.
Sure, I sometimes see it that way until I'm in the seat of a employer. This isn't a one-sided "corporations suck" because guess who's doing the suing in these cases? That's right, the potential employee. So where is the onus in this negative externality? I'd argue both sides.
It is sad indeed.
But at the same time requested to not give any feedback because of fear from litigation. Sad world.