I have never seen this. I also don't see a ban on incense and candles being very popular with a large percentage of prospective tenants. Wouldn't this also effectively ban people from doing puja and other religious ceremonies in their own homes?

I can imagine this being included for large towers; we're not allowed any flames in my office, for example, but there was no mention of this in my last three Chicago leases, and Chicago is well known for its fire safety measures for historical reasons.

If I were to encounter this in a normal house / apartment, I'd assume it was some racist clause like "no cooking with strong spices" used by bigoted landlords to try to keep POC out.