I don't hear it that often thankfully but it really gets my goat!
It seems to mean that a child gets a talent (or an irritating habit) genetically from their parents.
I have no idea why that would be honest and picking up a skill elsewhere would be dishonest.
But as my DCs are adopted it sounds like everything they can do it gained dishonestly and all other children get their talents honestly.
Surely getting something without effort from your parents' inbuilt talents would be less honest than working hard and developing a skill on your own?
And what if your genetics are less than fortunate? My DS has ADHD as does a member of his birth family. That's hardly "honest".