I've taken notes in plenty of interviews (and make sure to call it out ahead of time) but taking notes verbatim sounds absolutely terrible for both sides. A good interview is a conversation, and it's incredibly hard to do that if you're trying to transcribe the other half.
It’s possible they were taking notes on the second monitor. Many interview coaches recommend taking notes during the interview to capture the response, largely verbatim, so that candidates can be fairly compared afterwards.