I don't think they do, and it isn't necessarily expected. In fact a lot of places would instantly dismiss someone who'd been found to have been somewhat creative with their CV. Unfortunately, a lot of places also don't.

I agree. "Everyone" does not do it. And employers I have worked for do not "expect it." In fact, if they found out they would most likely fire the employee immediately.

People need to stop lying and trick one another and I for one am so fed up with it.

I don′t care about trying to decipher what people are trying to say anymore. If an interviewer, or anyone for that matter, says something I take it for what it is and if that is bad for me, then so be it. I don′t care to figure out a hidden meaning anymore.