[shoo]

I spent a few years interviewing people while working for a megacorp -- candidates applying for software engineering roles were subjected to a variation of this question fairly regularly.

Warning signals in responses could be someone claiming they've never failed at anything, or trying to push all the blame onto former colleagues without owning any part of it, or when asked what they'd do differently in a similar situation in future, saying that they'd do exactly the same thing.

All that said, I'm not sure this kind of question adds that much value to an interview pipeline. Many candidates early in their career may not yet have war stories of how they broke production, or may have poor interview technique and not really know how to handle this well. Arguably asking this question is putting someone under pressure in the stressful context of an interview, to see how they respond. People who are already terrified by the interview process may not respond very well at all -- but how relevant is this to the role you're hiring for?

This question might give you a strong red flag to reject a candidate < 5% of the time, but it doesn't give you a reason to accept them. They still have to do well on the other parts of the hiring process that assess technical skills & problem solving.