"There are people out there (not you, obviously) who can talk their way into an interview for programming jobs that they simply can't perform. We're talking about no skills whatsoever, apart from the ability to sling buzzwords around enough to impress a recruiter. God only knows how they get their degrees, but they have them."
"I am not making this up. It's a real problem. "
No, it's a survival bias. You have no way of knowing how they perform, unless you hire them, but you don't hire them, because they can't pass your interview process.
There are many reason why someone capable and experienced would "fail" an interview like that. But ultimately it just doesn't test for skills related to software development.