Verse should be understood with proper translation and proper context.@Kamayani,
The Yajurveda does contain a reference to rebirth. I am quoting from a book entitled ' The secret teachings of the Vedas ' by Stephen Knapp, published by Jaico Publishing House, India, ISBN 81-7224-091-0 page 139.
" O learned and tolerant soul, after roaming in waters and plants, thou enterest the womb and are born again and again.---- "
Of course, there are many references to rebirth in the somewhat later literature of the Upanishads and the Puranas.
Concept of re-birth was not even developed in Mahabharata's era. Although we find a few interpolated instances of re-birth in present extant version. But overall it was all about attaining heaven and all of people(both heroes or villains) go to same heaven.