I froze up. I couldn't talk and think at the same time. I didn't have the skillset for doing this in a very intense scenario. In my case, I was homeless and needed a job ASAP. Every interview felt like life or death to me.
First one I was asked to reverse a string in C. I hadn't done C in a few months. I froze up on syntax. I looked like an idiot who couldn't do it.
I could imagine many people who have never experienced this format (or haven't experienced it much) would easily freak out and look stupid as bricks like I did.
I've since done over 200 technical interviews (as the interviewee) and I usually sweep. Still fail at FAANG but I always get the solutions. (Even the leetcode hard ones) Just not sure why I fail but cest la vie.