Some suprisingly honest answers here (along with one whopper

).
I played with a group for seven years once and we had about 300 songs on our list. Most of the bands I've been in had 100 -200 songs on the list. To me, and it's just my opinion, how many songs you can play is more important than how many you know; i.e. someone gives you the key, the chords (if there are any tricky changes) and the feel, and you can get through the song.
I did an audition last month and they pulled out the Doobie Brothers' Long Train Running. I haven't played it in 30 years, but muscle memory took over and I played it fairly close to the record. I listened to the record when I got home and I didn't play it note for note, but I got all of the signature licks, and the feel.
I don't play any songs note for note and I haven't seen many people that do, although I've heard a lot say they do. What might be more accurate is that they play it
like the record, meaning all the signature licks, the feel and the majority of the notes. I believe that a lot of players do that, although I must admit even when I'm trying to sound like the record I probably still only play the signature lick exactly, and then cop the feel and the other parts I think are important. I don't get the point of "note for note" although I've heard it argued many times.