You're not wrong :)
I discuss my opinion a bit more in depth upthread https://news.ycombinator.com/item?id=28990879 but we don't actually know what happened, so it's impossible to say.
The candidate that is unable to explain any details about how linux containers actually work, other than to say "I used kubernetes at my last job" is getting picked after the person that actually understands how they work (given that we're hiring for a low-level linux role in this hypothetical :) ).
Or to frame it in a different way, how would you sort an array of numbers? The answer "I'd call array.sort()" isn't wrong per se, but there's an answer the interviewer is looking for and that's not it. If the interviewee furthermore becomes rude and aggressive about it and doesn't even know what time complexity is, that's a pass. (Not remotely suggesting that that's what happened here, but sometimes the biggest interview isn't official - if you're a raging asshole to the person at the reception desk, don't expect to get a callback.)