I recently applied and had a initial phone interview for a new position. I received a email after from the recruiter that the company would not be progressing further due to lack of desired experience. Later in the week, I received another email that the hiring manager wanted an interview for the same position on site. Is this a communication error or am I the second chance? Is this also a red flag? Any advice or suggestions would be great.

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It sound like a mistake. It could speak to clumsy HR, bad hiring software, new employee, and any number of reasons. When you interview, keep your eyes open to signs of disorganization.

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