This might shock and amaze you, but I took many midterms and finals for my CS and EE classes using pencil and paper in the 21st century, and this was at a well-known Californian private university.
Yes, all students took the test together on paper and pencil in the classroom; a digital version of the test was not available.
I just went through my files to check, and indeed the final exam for my artificial intelligence class was in-class, 2 hours, pen only (no pencil).