Last guy who sat in with us had this same kind of tiny rig - little Fender Pro junior and a Tele - and proceeded to teach us all a lesson in how necessary big amps and effects units are. In short, not at all.
A Fender Pro Jr. is 15 tube watts through a 1X10. I play these types of amps. I can pin my drummer's and bass player's ears back with them. Incredibly loud for their size.
If the amp in the OP is a 20 solid state watt 1X8 Fender Mustang (or similar) as mentioned, it's a practice/bedroom/small studio amp that would have a hard time keeping up with a toddler banging two pie pans together, let alone a full-on drummer and bass player.
Among other things, auditions are about showing you can bring the right gear for the situation. This candidate failed in that respect as well. I guess everyone could have just played really, really quiet for him while he dazzled them with everything except the material he was asked to prepare. But I'm still flying another red flag on gear preparedness.
There sure is a lot of sympathy for this poor, poor guitar player on this thread, so I'll give you a last thought and I'm on to other things: I'll speculate that there is a possibility he's an amazing musician, could dazzle your socks off, could easily learn the band's material so he knows it in his sleep, and has great gear appropriate for this project. But, for whatever reason, he just wasn't in a mood to show it to the band during the audition specifically scheduled so he could show it to the band.
And the end result is the same - no one really knows anything about this guitar player in a scenario that was designed to learn more about him, and few bands and BL's would roll the dice on this guy. He made himself a wildcard. Some (including me) might have handled the audition differently out of some misplaced sense of guilt or sympathy or something, but I don't fault the BL for dismissing him one bit.
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