Ask HN: Why isn’t the ‘Entrepreneur in Residence’ model a conflict of interest?

I know some people working in this capacity at VC firms. They’re sometimes domain experts. And their purpose is to sit in on relevant pitches. But their purpose there is to be benched until they arrive at a fundable idea. A lot of VCs won’t even sign NDAs or non-competes, so why is anyone okay with VCs having EIRs?