The truth is that (good) interviewers don't care when/where/how you acquired your skills and knowledge. They just care that you have the knowledge and ability, and also that your learning is on a consistent upward trajectory.
We ask if people do side projects not because side projects are mandatory, but because the goal of an interview is to surface any and every reason to believe the candidate is qualified. In practice, most engineers don't put side projects or hobby projects on their resume or even their GitHub profiles, and they won't spontaneously bring it up during the interview. Asking if they've worked on any fun hobby projects usually strikes up good conversation, loosens up the candidate, and maybe unearths some skills and interests that don't show up on the resume.
If a candidate says they don't program outside of work, it's not a negative. It's neutral. We just move on.