That is ... literally what CVs are for.
What's so crazy about judging a resume by its contents? Why even submit one if it's not meant to influence the decision?
Last I checked that's time and time again what companies hire on based on every study, lol.
Your issue seems to not be at all with prior work history, but hiring based on ethics. Given how much that is applied to arguments here on HN that are relevant to technical work, that seems at the very least like a valid factor that can absolutely effect work.
As to your example, the big difference here is that you jumped to a conclusion about the person's activities that doesn't seem very reasonable to assume based on their employment history. The parent went company worked at -> tacit acceptance of their actions as a company (again, there's nuance here that should always be explored) -> possible negative effects on future job.
Seriously? That's pretty much the whole point of a resume, for an employer to discriminate based on work and education history.
It sounds weird when said in a negative way, but it makes all the sense in the world when you think of it "positively", like "of course companies should prefer to hire someone that worked at a top company or graduated from a top school".