The girl, who cannot be identified for legal reasons, was facing 109 charges, including reckless conduct endangering serious injury, theft, motor vehicle theft and burglary, but Victoria Police have confirmed all charges have since been dropped.
"The charges were withdrawn because the police prosecution was unable to rebut the legal presumption that a child aged 13 and under is incapable of committing a criminal offence," a police spokeswoman said in a statement.
"This is a high legal threshold that requires the prosecution to prove the child knew their conduct was seriously morally wrong."
The girl was 13 years old when the offending took place.
A children's court previously heard the girl was allegedly behind the wheel of a stolen car which rammed into a 45-year-old cyclist, knocking him to the ground and causing a brain bleed, in Brighton in Melbourne's southeast on March 30.
"Shortly after that incident - within three minutes - she Googled how long the sentence is for running someone over," Detective Senior Constable Jarryd Grey told the court.
Other alleged incidents were aired in her April 13 hearing, including anti-Semitic remarks shouted at pedestrians in Hampton, Ripponlea and Caulfield, and swerving towards a Jewish family in Ripponlea - causing them to run for cover.
"There was a web search on 'where do Jews live'," Det Grey told the court.
"She is going out of her way to target a certain community."
The prosecutor said the teen was allegedly offending an average of 1.45 times a day in 74 days, and that she has "not only repeatedly been behind the wheel of a stolen car, but is weaponising them".
The girl thrived on notoriety believing it gave her "status in her group", the court heard.
Premier Jacinta Allan said the behaviour was unacceptable, pointing to her government's bail law reforms, "adult time" for violent crimes, and the introduction of the violence reduction unit.
Asked whether the teen having her charges dropped because she didn't know the difference between right or wrong was acceptable, the premier said, "I don't think it is".
"I'd suggest most people at most ages know the difference between right and wrong," she told reporters on Thursday.Â
Attorney-General Sonya Kilkenny highlighted the government's "nation-leading" violence reduction unit and serious consequences from toughened law crime as effective preventative measures.
No young person should think they were immune from serious consequences after the teen's case was dropped, Ms Kilkenny said.
Opposition spokesman David Southwick said the girl's charges being withdrawn didn't pass the pub test.
"For that person to be able to Google the punishment, but be too young to fit the punishment is completely ridiculous," he said.
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