I recall one of my friends, when I was at Google, sending me a screenshot of code written by Jeff Dean with an obvious bug. Jeff is, of course, extraordinary, but I wonder how many companies might have passed on him if he submitted that code in an interview setting.
Absolutely. There exists no single human being that does not make any mistakes. The trick is to find the people that make as few as possible, know how to track them down, and that can figure out how to hot-fix them as needed.