Earlier quoted context omitted.
It seems strange that the author has not met a single one that understands that concept since it is quite basic. I am guessing he just is bad at interviewing and asks trick questions till he meet someone who know the interviewing game inside out. Examples he gives: "Current limiting resistors missing (BJTs, diodes, etc.) Shorting a potentiometer node to a rail Voltage regulators missing capacitors at input/output Mis…
Decoupling capacitors need to be within a few mm of the integrated circuit consuming the power. It really doesn't matter if the voltage regulator has them or not. This is different than for bulk capacitors, but even those should still be on the same PCB assembly because connectors have higher resistance and this will limit their ability to handle transient surges.
Not all LDOs are stable without external output capacitance in a particular range / ESR.