This is exactly how it works, recruiters don't get paid unless they get a candidate hired. Despite all the words they write and say to you, they only care about getting you and the hiring manager to say yes and _everything_ else doesn't matter or is immaterial to them.
Unfortunately it's nothing new to see recruiters being less than honest. In their defense, right now is a weird time with many companies who were firmly in the remote only culture now backtracking and reopening again. It could be the case when this position opened things were much different with its requirements.
But ultimately never trust a thing a recruiter says unless it is signed in writing from your hiring manager/HR of the company. Never believe anything they say about compensation, the future of the company or your position, etc. Never.