It varies from company to company, but it is the "industry norm."

What happens is that people whine about live coding exercises; then someone decides to skip them, and immediately makes a bad hire. The lesson is then learned and they resume live coding exercises.

To turn the tables: As a candidate, If there isn't a live coding exercise, it's a red flag and tells me the company isn't savvy. (And I've taken a bad job as a result and now won't take a job unless I have a live coding exercise with someone who I will be working with.)