I think I understand what you're saying, but I think you're oversimplifying, and that would do a disservice to people who may be new to the job market. Just because someone is a big name doesn't mean they're the right fit to lead a team - some of the best engineers I've ever met have no interest in leading teams, but are very valuable to have on the team. Hiring well, and believing in the team that you've hired is important, and I think it's a red flag to see management churn.

To me, the red flags are absolutes. i.e. "Yes, we would absolutely replace our team lead because we only want the best" sounds like a toxic place, and it's not the kind of place I would expect to find (most of) the best engineers that I've worked with. And "No, we would never hire that person because our team is the best" sounds arrogant or naive.