How it is or how it should be? Well here’s how I see it.
Like mechwarriors, it’s a series of three one-on-one fights. If the candidate wins the first, he is a warrior, if the second, he’s a Point Commander, if the third, he’s a Star Commander. It would be fought augmented with fully powered weapons.
There would/should be a defined victory condition. This is important since it wouldn’t be prudent to require a candidate to kill one to three veteran warriors to become a warrior - attrition from ToPs alone would decimate the infantry corps (i.e, the infantry corps could never grow in size). So the candidate is probably allowed to fight to the death. But the veterans would be considered defeated prior to that point. Maybe when armor is down to a certain point (1 or 2 points left maybe). The veteran should also surrender liberally in these tests – not out of cowardice, or to throw the fight, but to preserve clan resources once the candidate has the upper hand.
Finally, I think the candidate should start in a tough suit of armor, and his first opponent should be in light(er) armor. This also seems to happen in MW trials where candidates start in heavy or assault mechs quite often.
ToPs for rank advancement should be different. The two candidates should fight unaugmented or in their traditional armor. Since there is a lot at stake here, the fight should go till one is unconscious, dead, or surrenders.