I totally agree with you about the change in values today as I too have been around long enough to see the negative change in society. That said, I still do not believe a change in values has anything to do with the situation posited by the OP.
As was mentioned by almost all of the others who responded to the original post, the situation reeks with toxicity and a controlling nature on a level that transcends values. I simply agree with those who posted similar opinions.
As I stated, I personally and professionally would not have ever considered applying for such a position in 1981 or in 2022. My values have not changed from 1981 to 2022.
Societal values and workplace toxicity have nothing to do with each other in my opinion. The situation described by the OP still sounds toxic to me. I can respect that you feel otherwise, but I agree to disagree.