Yup! If I see them struggling to answer a question or admit to not knowing something I will ask them "well, how would you find the answer?", to which they always half-jokingly answer "I'd Google it". That's when I'll let them know that I want to see some of that too!

Why? You'll have access to google when you're working so I would assume you're allowed to google stuff during the interview.

Because people administering tests always have weird or arbitrary assumptions and restrictions. Part of getting through school is jumping through all the contrived hoops they place before you, even when it'd be much easier to just walk around the hoops. Job interviews are no different; different interviewers have different expectations, and many don't want you consulting outside information sources.