Why are you sure it's a myth? My prior would be to believe that engineers at the most exclusive companies with the highest hiring bars that pay 3-5 times more than average would be better programmers. The article is just one data point confirming what intuitively should be true.
If Silicon Valley engineers are no better than anywhere else then someone should notify the execs at FAANG, I'm sure they'd be interested to know they are dramatically overpaying for talent.
I don't understand what is so uncontroversial about this. SV companies recruit the best talent from around the world and it's where the best talent wants to work. Similarly, the best financial talents are in NYC and London, the best actors are in Hollywood etc.