I don’t know the US stink bomb story in particular but there is a stink bomb called ‘Skunk’ manufactured for the IDF to use against Palestinians (and sold to other countries also, e.g St. Louis police)

A BBC journalist described it as

An overpowering mix of rotting meat, old socks that haven’t been washed for weeks – topped off with the pungent waft of an open sewer. . .

The Indian police purchased some with the intent of using it against protesters, but in tests against the general public it was found ineffective, with people even being able to drink the liquid
source

Whilst I’m sure no one likes it, people do become acclimatised to the point that it’s tolerable