I've heard several of my peers suggest that a Hardship W/d is no longer subject to withholding. I read that the distribution would be subject to 10% withholding.
What am I missing?

UCA '92 added mandatory 20% withholding for eligibile rollover distributions. Prior to that time, there were different withholding rules. Those old rules still apply for distributions that are not eligible for rollover. I believe that there is not 10% mandatory withholding, but that the participant can elect withholding, with 10% being the default if there is no participant election.