It is entirely possible to realise Lambda calculus using lisp. But McCarthy not understanding it is surprising.
I think he is commenting on the subtleties of it.
I think many reading here will say they understand it or have studied it in a course but I am not so sure everyone gets the subtle points. Myself I have always puzzled over the difference between what programmers call LC and what seems to be discussed by Church.
Lambda calculus can be modeled in lisp. But there are millions of things you can build with Lisp that McCarthy might not know or care about.