Over the past few decades it’s become very clear this is needed. The problem is that by making LBOs illegal you are saying that a controlling stake of the company’s stock isn’t the same as owning a controlling stake in the company. So at that point the value of stocks becomes a bit more speculative and likely much less stable. Given that basically the entirety of our economy is built on the stock market I think this is incredibly unlikely to ever happen.
I work in tech and needed to do this as part of onboarding after receiving an offer. Asking during the interview is a little weird but if they’ve had problems where their desired candidate didn’t have the necessary documents then it makes sense. I wouldn’t assume they’re wanting to see your house, they’re likely just wanting to make sure you won’t need H1B sponsorship to get the necessary documents to complete the I-9.