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I don't know about your field, but that does seem somewhat suspicious to me. I suppose it depends on which company, which product, and which field.
For instance, I could presumably see an argument for turning down a salesperson applicant to Microsoft for not having used Microsoft Office before. ie, if not using a given product demonstrates lack of experience in the field.
Is the product well-known or a standard in the field?
I've updated the description to mention that this is definitely not a scam, more like weird and unreasonable behavior.
Honestly, be grateful you even received notice you didn't make it past the interview. Most jobs just leave you on read so to speak.
If its worded the way you've worded it, then I don't think it is illegal in most countries. That said, if the details could be phrased dramatically, a 60 second news story calling it a fishy practice, might make it illegal.... which it should be