Being able to write something that is readable for others (do whatever you want when writing for yourself) is part of basic skills just like being able to read a text in a reasonable amount of time.
Your teacher was terribly wrong, they should have awarded points for presentation, spelling and grammar (assuming they can evaluate that too; in my country the culture of "good science people can have terrible spelling" is a scourge).
I'm very grateful now for the ability to take notes quickly in meetings where things go really fast and I don't have a chance to ask people to repeat what they said. But of course if I'm sending those notes out later, I'll take the time to format them properly.
During these exams, candidates typically won't be given enough time. This is by design, and candidates will be ranked by how far they got in addition to correctness.
Also, in order to promote fairness, grading is standardized. And teachers will tell you the corners you can cut and the ones you can't.
Well, you are talking about judging a book by its cover? That's what you have done right there!