Absolutely, and this often also applies to high-achieving graduates coming into the workplace for the first time and finding they can’t cope with feedback that’s any less than perfect.
Very familiar to me, teaching undergrads in a competitive degree in a research-led university.
It is frustrating, as the panic is also intertwined with a certain level of arrogance - as if my 30 years' of knowledge & experience is of no value to them.
But I try to remember that a) there are some things it takes you a lifetime - or at least 5 years after formal education, to learn and b) this is a generation of kids who have been assessed, judged, evaluated to within an inch of their lives since they were 5 or 6, with the first SATS.
And the acknowledgement of the stress of that constant assessment on children, is not to release & remove some of the assessment, but to make sure the assessment is always positive.
Sometimes, we need to be told we've got it a bit wrong.
The main thing I find is not so much in my students' responses to formal assessment, but when I suggest to them that they need to learn ore professional courtesy: for example, that sending emails without subject lines, no formal greeting, and expecting an immediate response to a problem which is often of their own making, is not the way to get me to do them a favour! And so on. I"m sure we all have our stories about this.
The other consequence of this over-stress on assessment is the catastrophising - give a student less than 60% (bottom of an upper Second) and some students will tell me that they've failed and they are a failure.
But again, learning that there are gradations between black and white is a life long lesson.