Are you US based?
Here in Europe this sometimes happens (candidates can't code at all), but _very_ rarely, maybe 1 out of 100? Especially as you move eastwards, the base coding abilities start to improve massively for the average candidate - in the UK, if you are stupid you can easily get by on the social welfare system, in Eastern Europe, if you are stupid, you starve. As simple as.
There was a time I used to ask Fizzbuzz-style warmup questions on interviews, but then I stopped because the signal it gave was pretty much useless. The only positive case I can remember was when a tester applied for a dev position.