My 2 cents, without knowing anything about the school, unless it’s Musician’s Institute and you have a time machine that returns you to the 80’s:
Groove is everything. Shred is nothing. ‘Rock/pop’ is not what you call it if you’re looking for shred. There is not a huge demand in the music industry for shredders, and music schools are supposed to prepare musicians to thrive in the industry. My guess is the panel will not be impressed by extremely technical playing that doesn’t make them bob their heads. If you really want to impress them, bring the groove.
Nuno wasn’t wrong (even if he maybe shouldn’t have called out Slash or anyone else), playing in Rihanna’s band is almost certainly beyond the skills of most successful rock and metal guitar players, even (especially) those with massive technical chops. Shredders focus on technical skills that make them stand out from the crowd. Extremely successful pop players serve the song, not themselves. They do have massive technical chops, but they are not focused around shredding. (It turns out only shredders equate technical skills with shredding. Everyone else recognizes the importance of rhythm, timing, placement in the pocket, subtlety, composition, stylistic diversity, etc. Some of the absolute greatest guitar players I’m aware of are in the Modern R&B genre, and not just neo-soul instagram players, but the guys who play on the records and tours.) They also understand music, not just guitar. They know that they sometimes have to disappear into the groove of the song, adding just the right spice to make it sparkle, and not so much that anybody notices them in particular (the audience should usually be focused on the singer).
If you are even considering playing Technical Difficulties in your audition, you have enough chops for the gig. Focus on Artistic Competence rather than Technical Competence. You know what’s really expressive and communicative? A groove. Don’t try to blow the panel’s minds with your playing, make them feel something, and make them want to move their bodies. That’s what music is for, and that’s what audiences respond to.
Also, you are auditioning to become a teacher, not a band member. Communicative ability is extremely important in all teaching, not just music. Sell yourself as a teacher, not just a player, and really try to connect and communicate with the panel. Give them the experience of how you will eventually interact with your students. The panel probably wants to see that you have insight, empathy, and the ability to speak on your students’ level, not just chops.
If you really want to be a music teacher in the rock/pop orientation, this is something I’d consider focusing on. Shred is a very tiny corner of the rock/pop universe. Read that interview with Nuno. He says it better than me.
Best of luck.