How Do PM Internship Programs Evaluate Candidates With Prior Experience?

I’m curious about how product management internship programs evaluate graduate students who already have several years of full-time work experience.

For hiring managers and recruiters who have selected PM interns:

• Is prior experience generally viewed as an advantage or a sign that someone is overqualified?
• Do some internship programs have informal experience limits?
• Are experienced graduate students evaluated differently from candidates entering directly from undergraduate programs?
• Can applicant-tracking systems screen out candidates based on years of experience?

I think this could be useful for understanding how PM internship programs define their target candidate profiles.