I had a similar test, although it was verbal by a guy who did SolidWorks at a foundry where I got my first “design drafter” job which I turned into industrial design job. They had a complex tap (bibcock) which the guy questioning me was having trouble modelling. At the foundry we had to get client’s products and bring them into the 21st century by 3D modelling them to create new low pressure die casting dies.
He showed me his file, which was ok, but not very accurate, and then asked me how I would model it. I told him how I would use surfaces rather than solid modelling; using splines and tangent relations, equal curvature relations, intersection curves and then stitch it all together, model the core, indent etc. He was blown away.
I then had to email my University lecturer who taught me solidworks, because my methods weren’t giving the correct result. Haha. As a fresh graduate, I found this nerve racking as my career literally depended on it - there were almost zero ID jobs in 2010 in Australia; but I didn’t find it insulting. I would now, though, as I have proven myself with product releases, awards etc.
I can’t imagine how shitty that made the OP feel as a senior designer and manager. What a complete insult. You were 100% justified to leave, and should have charged them for wasting your time. The person who excused this behaviour and added insult to injury obviously hasn’t been on the receiving end of this sort of behaviour, and if they have, must be a masochist of some sort.