I work on a ton of different stuff, and this clause comes up for every job. I get them to remove it, or I don't accept the job offer.
For me, this is a red/green flag on management. The clause is legal boilerplate, inserted because it's standard and they can. They don't actually care that much about anything you might build outside of work. If they won't (or can't) remove it then the organisation is inflexible and the people who are hiring me have no power within it. Or the people who are hiring me don't understand my point of view. This is a bad sign either way.
I have had one "win" with it; I worked for a company run by a trio of absolute arseholes. One of them called a meeting and tried to bully me into handing over one of my projects because of this clause. I explained that my contract didn't have that clause because they removed it before I signed it. He got angry. But couldn't actually do anything about it.