Yes, "thousands of Google engineers who do interviews haven't figured out that people writing code on a whiteboard under stress aren't the same thing as people sat at their desk grinding out code?"
I am pretty confident they don't know that. I know people way smarter than me who flunked the google interviews and, working in the same building, know even more that got in who are very good but not great. Also, they are ageist and "don't consider experience at all" (and that is from a direct quote from a person in an interview).