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On paper is only half the story; interviews, references, culture fit, and internal candidates all play a big role. Sometimes it’s as simple (and frustrating) as them having someone in mind already. If you can, I’d ask for specific feedback once in a while and also make sure your resume shows concrete results, not just duties.
There are honestly so many reasons someone might get passed over. Someone may be overqualified and the fear is that they won't stay with the company long. Or someone may not interview well and may not be a cultural fit. It really could be any number of things.