I would reckon (based on my own observation, combined with some research that has come out recently -- see below) that "a good percentage of this good percentage" probably failed due to nervousness, rather than than truly lacking basic coding skills.
If they failed your test -- you just know they failed your test. That doesn't mean you now that they're incompetent.
https://dl.acm.org/doi/abs/10.1145/3368089.3409712