I’m convinced that it’s because younger people are easier to control and less likely to speak up about messed up stuff. So while it would be in the company’s best interest to hire more experienced developers, it’s in the interest of individual managers to prefer younger folks.
This makes sense. I didn't think about it specifically from a manager's POV, since I'd like to think they're more likely to act in the company's best interests when it's a tiny/small eng org.