When I was a student in the United States in the 1990s, I took many tests in which handwriting speed limited me. It was purely a physical problem. When I was permitted to type, there was no issue. To be clear, I'm speaking of tests in the humanities and social sciences, for which students must write short essays.
Later, when I was a professor in the United States, I saw some of my students grappling with the same problem.
I don't think that my students and I are extraordinary. Other people were, and are, limited by slow handwriting when they are required to handwrite their exams. You could try to identify these people and give them extra time. But the better move would be to stop requiring students to handwrite essays under a time constraint.
> the better move would be to stop requiring students to handwrite essays under a time constraint
Alas, we now depend on "lockdown browser mode" for reliably taking tests where you can type, and still there's no support (AFAIK) for "lockdown vim in browser" for coding tests.