ETC interview questions

I was recommended this company through a recruiting agency. I sent in my resume and they asked for past employer references as well. There was an initial phone screen about employment details with the recruiter like that the job is on site. Then there was an interview with two IT managers from the company. They explained the project and the team and then asked about my experience. I received a call about a week after the interview from the recruiter that they found someone else. The only feedback i got was the company said I was too honest. I'm not sure what that means so I just moved on.