Very true. 😭😂And that's the problem - a lot of people are not very good liars and get spotted easily (a bit like Jay!).
But I think you could use the example of your retail manager if there is something you did to improve the situation. If it was just that they were manipulative and pyscho, there isn't any action from you to resolve or improve the situation. However, if you did so something (e.g. helped train new members of the team, took on additional responsibilities to protect others/get things done/improve the working environment), then you could definitely use such an example (and it may actually be a pretty good example to use).
Thank you for sharing that. Tbf I have always assumed that I should stay away from examples that may be too "negative" or "real" because I don't want the interviewer to get a bad impression or develop a bias. I also worry that they may think I am the sort of worker to leave a workplace and then talk negatively about the people. However, the way you have explained that makes a lot more sense and it's reassuring to hear that we can speak about those kind of examples too, but worded appropriately of course!