The false negative/false positive question is more about the costs of hiring a "bad" engineer than how hard it is to find a "good" one.
I've been in that situation: Once, at an old job, I had put in for a new role that had been created. There was also an outside candidate who'd applied for the role. Management felt that having me interview this candidate would have been a conflict of interest, considering, so I wasn't asked to participate.
I knew within 30 seconds of meeting him that he wouldn't last. He didn't. They gave him three months, and we all agreed in retrospect that he shouldn't have been hired at all.
In the interim, I did my old job, as well as his job (in the form of handholding him through everything he did more complicated than surfing the web), and was very quickly given the title of "Senior $role", with him as a direct report.
The other engineers and I spent hours, daily, working hand in hand with him, correcting his code, repeatedly suggesting the same things he could do to avoid having those problems with his code in the first place, &c.
That's just one example of what the thing I thought the grandparent meant by "false positive" can cost you. I'm sure there are worse.