It's definitely a "thing" and employers are right to worry about it.
I have personal experience. I worked my way up to a directorship position, which was great, but the hours were ridiculously long and it was a 90 minute each way commute, so basically a minimum 12 hours away from home, often 15-18 hours if there was an evening meeting. I lasted 2 years, but then got married and decided enough was enough.
I saw an ideal job advertised, literally 5 minutes away, a few steps down the career ladder, but I decided the work/life balance was more important. I applied, and it was the main topic of conversation at the interview - they were worried about me getting bored, not being able to be under supervision/control of lesser qualified/less experienced managers, etc etc - I genuinely thought it would be fine and managed to persuade them I'd be happy to go down a few rungs. I got the job.
Virtually from the first day, I was incredibly frustrated about virtually everything. I could do the work in my sleep, far higher quality than others, and far faster. Certain sections of my work file had to be reviewed (as is normal in the profession), but the reviews were being done by people with lesser qualifications and less experience, so nothing but a box-ticking exercise. Managerial file reviews were the same. Very difficult to get used to this after several years when I was the one at the top doing the reviews of everyone else. Then came the firms' computer systems - antiquated - in my previous job, I'd fully computerised the firm, chose, implemented and trained the staff on the hardware, software, systems etc - the works. I could see just how crap their computer systems were - outdated software, crazy duplication (still re-keying data instead of export/import via csv files etc). I tried to keep my mouth shut and accept my lowly position, but just couldn't and started making suggestions to the management and owners - didn't go down well of course as they took it the wrong way.
And so it went on. I just couldn't find it in myself to just go to walk, sit in corner, do what I was told, and go home again. It just wasn't me. I'd seen and done it all in my previous job and could see so many ways to improve the firm and systems etc. I couldn't stay quiet, so I just made myself more and more unpopular as I tried to improve things. The owners were happy enough but the other staff really couldn't accept someone new coming in trying to change things. Eventually, the atmosphere was toxic and I had to leave. Owners were very supportive and offered me a managerial job so I could use my experience better, but I didn't want to go back to being a manager with the hours/stress, etc. I had to admit they were right from the outset and that I was wrong when I told them coming down the career ladder would be fine for me.
In the end, I went in a completely different direction. Based on my experience, I think the OP would be better to find a different job/industry to work in, where they could use some of their complimentary skills, rather than just staying in a similar job but at a lower level.