When it reality what it actually means is "your experience suggests you are worth more than what we're paying, and we'd rather not spend the time onboarding you just to have you leave in 6 months when you a job more commensurate with your experience and skills."
I've been on the employer side of taking a chance on overqualified folks and it's a waste of a lot of time and a lot of money.
Obviously depends on location and stuff, but you can get overqualified people to stay due to life circumstances (for example due to their significant other doing a postgraduate degree which means they can't easily move cities or country).
I've been on the employer side of taking a chance on overqualified folks and it's a waste of a lot of time and a lot of money.