I'm skeptical of that trope also. I remember that stack overflow fizzbuzz post, but I never encountered a interview candidate so bad that they couldn't program fizzbuzz. I've also never been asked to do anything as basic as code a fizzbuzz example in an interview.

Most people seemed to have workable skill levels. A pretty good portion of people seemed to still be in the novelty phase of programming where they would be slightly too excited and surprised at themself, and perhaps slightly unconfident, in answering a fairly basic question correctly.