This is a sign that the hiring process is broken. It's not testing skill level, it's testing anxiety level.
People who break down and cry in interviews are rare but if they do it, they are best avoided and it was good that the interview revealed this. You cannot have that happening on the job but if they can't handle being asked to program something whilst up against a time limit or being watched, they're going to have breakdowns in other situations too.
Is this actually true? It's been widely and frequently claimed over the years that "199 out of 200 applicants for every programming job can't write code at all. I repeat: they can't write any code whatsoever." https://blog.codinghorror.com/why-cant-programmers-program/
> frankly a bit insulting to people who learned to control their emotions
It's frankly a bit ignorant of human psychology to think that people can just "learn" to control their emotions. We're humans, not robots. Yes, you could go to a professional therapist, if you have both the time and money; it could take a lot of both. But if many people have to go to a therapist for the sole purpose of dealing with audition-style coding interviews, then maybe there's something seriously wrong with audition-style coding interviews. It's already bizarre that candidates with many years of experience in the field have to study intensely for job interviews.
> and work under pressure
I explained at length in the link from my previous comment that working under pressure is entirely different from interview pressure.
For a given job most candidates actually don't get hired, often because they are not a good fit but many times because they are too nervous to think straight.