Sorry, just to be clear, the defense that they pulled something out of their ass is that they linked to something that outed them? So they couldn't have actually have been overstating it?
If anything, that proves the point that they weren't rigorous! They claimed a thing. The thing didn't accomplish what they said. I'm not saying that they hid it but that they misrepresented the thing that they built. My comment to you is that the interview didn't directly firmly pressure them on this.
Generating a million lines of code in parallel isn't impressive. Burning a mountain of resources in parallel isn't noteworthy (see: the weekly post of someone with an out of control EC2 instance racking up $100k of charges.)
It would have been remarkable if they'd built a browser from scratch, which they said they did, except they didn't. It was a 50 million token hackathon project that didn't work, dressed up as a groundbreaking example of their product.
As feedback, I hope in the future you'll push back firmly on these types of claims when given the opportunity, even if it makes the interviewee uncomfy. Incredible claims require incredible evidence. They didn't have it.