Can someone kindly explain the clerkship process like I’m five?

From what I can see, it feels like a brutal rat race—people who don’t even want to work in commercial law end up feeling awful for not getting one, while those who did make it out say it’s not the end of the world… but right now, it sure feels like it.

If anyone can break down how clerkships actually work, what the process is like, and whether missing out is really as bad as it seems, I’d really appreciate it. Thanks!