They found this person at the top of the funnel, before they even started the process, and then chose to go through with it out of curiosity / for advertising. I personally think it's silly (I don't think the advertising or learning about some comically basic TTP like "interview coaching" was worth their team's time) but it's not a lack of basic process in this case.
I will say that hiring for remote jobs has gotten to be a gigantic time waste lately. Even though even moderate background checking can filter these candidates out, it's quite time consuming and with the rise of generative AI, these type of candidates (whether state-sponsored malicious actors or overemployment shops) are appearing in every industry and every role constantly by the hundreds. I disagree completely with other posts claiming only crypto and finance are being targeted; while it's hard to confirm and the North Korean operation specifically may be more tailored, fake candidates are rampant throughout the tech industry now.