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Usually it's a management problem (like favoritism or something), so going to management is just going to put a target on your back.

Usually they've made a couple enemies. Just gang up with their enemies. If it's a group effort, there's only so much management can do at that point (depending on how much leverage they have). It's all dependent on the specific political situation.

This whole image of them being "well-liked" and socially invincible is just a play. Usually this type of person has made a shit ton of enemies. It may or may not be worthwhile depending on how shitty of a situation you're in, how bad the company's stack ranking and layoff quota is, how attached they are to you, etc

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I think that’s a great reason to get into the psychology of bullshitters, or at least get really familiar with their tactics. You are going to have a lot of situations in your life when you can’t just flip a switch and get rid of them.
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When you're working with a bullshitter and can't just leave, what use is there in performative caring? Your coworkers may have still cared, privately, but actively complaining about it, presuming boss man doesn't care anyway, is just pissing into the wind. You may as well accept that he's a bullshitter and get over it. Some people are like that and it doesn't help you to spend your time seething over it.

If you can get him fired then go for it. Otherwise, you're only harming yourself by letting yourself dwell on it. As for believing him; when my coworker starts rambling about the time the Navy seals came to him for help, I just say "wow man, crazy". I don't believe him, but neither do I confront it. Why bother? I'm not being paid to call out his dumb lies. This is probably what your other coworkers were thinking.

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Caring and "seething" over it helps helps you to not become like them, not to adopt their projected views, not to blame their victims or otherwise contributing to the harm.

Conversely, actively complaining about it prevents enabling group thing to form. It helps victims identify the situation sooner, to leave of better protect themselves.

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I’m not worried about becoming like them, and I have never once seen complaining about them or calling them out work positively for the person doing it. But, I’ve found acting confused and asking them for more detailed information has helped.
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My comment was not about person doing it, but what doing it does to victims.
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Maybe so, but its a mistake to assume others are falling for it just because they don't outwardly react to it. Ignoring it is the low-effort route that gets you through the day, so most people will usually do that.
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Personally when I ignore things that I feel are wrong it just gnaws on me constantly. I agree that it’s the low-effort route but if I had an extreme bullshitter I had to work with on a daily basis would need to do something about it or switch jobs. Doesn’t mean I constantly need to call out ever single bit of untruth; like so many things it’s a spectrum
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True. The practical reality is that it causes colleagues to divert limited resources to address this web of lies. No one wants to do that unless you're a fiend for emotional drama (practically speaking, some are desperate to gather any and all ammo to use against each other). For everyone else, it's emotional labor. And no one is getting paid to do emotional labor (unless that's the unspoken agreement that isn't written in their job descriptions).

If you really wanna out a liar and come out clean on the other end, it's just so much documentation, emotional decision trees, how to phrase & frame & present things, etc. etc. etc.

Often, the compulsive liar will out themselves, create their own demise, or be enabled and further empowered by a toxic system that rewards such types (which if possible, you'd wanna get out of ASAP because prolonged exposure leaves lasting damage to anyone in such systems).

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Yes most people either show nothing and later end up believing at least portion of lies ... or believe lies.

But, you acted as if there was something wrong with those who dont. And as if there was some higher value in enabling and playing along. I disagree with both.

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