[throwaaskjdfh]

It's not really a WTF. In any disagreement about intellectual property, where some part of Amazon is working on a game and it happens to conflict with some other employee's personal project, Amazon wants all the leverage. It makes sense to have something that says "in a pinch, we're going to use what we use, even if you say it's yours".

If an employee expects to do something interesting or profitable with a personal project, then it's a "no", but it's not a WTF.

EDITED TO ADD: This is why we need laws that protect personal projects and make it impossible for companies to demand this. But in the absence of such restrictions on companies, they're going to set themselves up to win in any kind of dispute. It is not a WTF.