I'm not a big fan of governments paying up to rescue big companies that made billions and in the end went bankrupt because in a free market is unfair. But that's far, very far from not being capitalism. The action itself may not be the most "capitalistic" but after that the government doesn't take control, it's not an expropriation.
Not exactly a 'free market' then if they're not free to fail.
But we're also a country with medicare and food stamps and we recognize pure capitalism isn't flawless. Had a company like GM been allowed to fail suddenly then entire major cities would have seen unemployment go up 3x or 4x, and that's a lot of people who don't have jobs in a city that just lost it's primary industry. Most of those people are not white collar professionals who can hop over to SV - there are very limited jobs building cars.
As a country where we do sometimes engage in non-capitalist behavior (FDIC insurance, jobs programs, so on) it's sometimes more efficient to prop up a bad business and let it fail slowly then to entirely take a hands off approach.
As soon as the state decides to prop a failing business up, it's no longer capitalism and the state gets control of the companies decision making process.