It’s an unfortunate consequence of diversity-driven hiring practices. Another is that applicants who would’ve gotten hired on their own merit are prejudged as diversity hires.

The much more important problem is all the people who are legitimately better qualified who are turned down because of their race.

I wouldn't say "more important", but certainly important. I've now spoken to quite a few (very capable) white friends who believe they didn't get the job due to their color - and I couldn't tell them they were wrong. It's definitely creating racial divides.

I think that's one downside of targeting increased diversity. Diverse employees might wonder if they were hired for talent or for their identity.

Along with their co-workers wondering the same thing.

There were plenty of very loud, often repeated warnings about exactly this problem happening but is seems only so much can be done.