I feel like it probably functions more as a proxy of general algorithms knowledge. If you've forgotten even the most basic algorithms like bubble/insertion/selection/merge/quick sort then that indicates that you've been neglecting your algorithms knowledge since college.
It also kind of depends on the person. If you're interviewing an intern who's still in college, absolutely they should still remember bubble sort. If they don't know it off the top of their heads, they weren't paying attention in class. If you're interviewing someone who went to a boot camp then it would be expected that they wouldn't know a lot of the trivia like bubble sort that nobody really uses.