Yes, it's not that Google doesn't penalize it anymore, they do, they filter it and once found, those links can harm your website's overall backlink health.
If you've ever worked in any agencies, you'll know this, as you see it and have to disavow those schemes or they WILL bleed away your keywords.
Remember, Google doesn't and hasn't index the whole internet, that just not economically feasible, that's why these backlinks matter, but they are more a live indicator than anything else, that you need to monitor them frequently!
Neg SEO not only works, but is now a very sophisticated business. if you can make money with it, it's a business basically.
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Check your website with :
Google Search Console > Links ( 1st )
If you can ( Ahrefs - backlink checker is by far the best, but still isn't perfect )
Many others aren't as good with their indexing I've found