apply and see what happens- yes, low grades is generally not a good thing, but i think you're probably right about them paying more attention to external exam grades, written work, test, interview etc.
None of this really matters, though- your application seems as strong as many other applicants, and we can speculate until the cows come home about how it'll be viewed, but either you'll get an offer or you won't, so you may as well try.