Also, if the core problem is students setting out to get a degree, then the system is fundamentally broken - after all, the unique differentiator of universities is the ability to award degrees.
FWIW, I think college is significantly overrated, but treating a high GPA as a red flag and yet seeking candidates with a degree seems contradictory to me.
For some context, my own experience was that I had offers for employment before university, but I decided a diploma would be valuable, so I spent 3 years in school to finish a 4 year degree with a "high GPA." That's a red flag?
I think the core of the problem is people who never learn perspective or why you would do something outside of good grades - no one grades you at work.
I wouldn't say your GPA is a red flag without investigating the rest. If you have a GPA -and- other good qualities, then the GPA ceases to be a red flag.
That's the problem right there.
You don't go to school to get a degree - you go to school to get an education and build a network.
Often, especially in the case of your interests not aligning with your degree program, effort put towards your degree detracts from your education.
I learned a heck of a lot more from leading a software team in Student Government than I did from any of the coursework attempting to teach those skills. SG doesn't count for shit in my GPA, took 20-40 hours a week, and really whipped me into shape.
I say it doesn't make sense to punish for having a high GPA, but it is a red flag in exactly the same way that a low one is - it indicates a lack of balance or a preponderance of extrinsic motivation.