>is it that they're in on the grift and everyone understands that she's just there as a wink-wink-totaly-not state censor, or do they genuinely fall for her schtick?

It's both. That's one of the things that's difficult to suss out and therefore have a plan to engage. There's plausible deniability on both ends of that spectrum. Even in the high positions in the administration, there's a smattering of True Believers in amongst the grifters.