In the mortal realm, gods are just like ordinary people, devoid of power.
However, the sealing of divine power doesn't mean that gods lose everything.
For instance, their experience, their knowledge, their insight, these all belong not to divine power but to their inherent abilities.
Why can gods discern if children in the mortal realm are lying?
It's simple, because they possess a transcendent perspective and insight, coupled with eons of life (divine life) experience, if someone lies before them, it's easy for these worldly gods to see through it.
Moreover, beauties like Frey and Ishtar, their "beauty" itself is both a power and a condition, not within the domain of divine power, even if they bewitch the children into being utterly captivated, with only them in their eyes, losing rationality for this, it is not considered a breach.