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

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).

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.