Worse is better. It's an easy place to do collaborative editing. For google specifically, I think they leverage some google docs automation for capturing artifacts for hiring committee in their interview workflow.
It's not though. They expect shit to run afterwards. As someone who primarily writes Python (whitespace matters) in Vim (it's universal), having to code in Google Docs is a horrifying experience
No reasonable interviewer expects you to write perfect code on a whiteboard or in a non-IDE editor. I'm sure there are plenty of unreasonable interviewers, which is an indicator that you don't want to work for them.
That was my thought, but I got syntax complaints after my first tech screen with Google. Now Asana is asking me to do the same so I'm hesitant to even move forward.