It is usually a group audition teaching a specific portion of a set sequence the company they want to see that you can use their cueing formula and hold space confidently
Its typically a group audition with a panel of experienced instructors and management. They give you about 5 minutes to teach a portion of a set sequence to see how you hold space in the room.
In order to be a yoga instructor, you have to go through an intensive weekend and then audition. They frame it as "Yes" or "Not Yet" because they genuinely want teachers to improve and grow.