I think in general all of these things just start to come off as dishonest, when senior engineers think about what makes them feel "senior," or what they respect and value in "senior" colleagues.
At some point I think senior engineers realize that coding is the absolute least of your worries as someone expected to do things like interface with the business side, plan medium/long-term roadmaps, improve dev tools or general architecture to make juniors more productive, or mentor/train/manage juniors.
When the entire process seems to be heavily weighted towards coding, it gives off the vibe that this is a company that recognizes overworking and churning out code as traits of a senior engineer, instead of shrewd decision-making, efficient delegation, smart scoping of projects, strong leadership skills, etc etc etc.
I don't want to spend my free time building a portfolio of random bullshit code any more than I want to spend time on your take home test. Because I can't for the life of me see why having an impressive (or average) github profile should be the leading indicator for senior engineering skills.
What is wrong with simple live-coding sessions on very small pieces of code while discussing objectives, edge cases, extensions, etc? Coupled with a high-level systems design session with whiteboard diagrams but no code, and a behavioral interview assessing leadership skills, extracurriculars, personality type, etc. Sane companies seem perfectly fine with sticking to this formula.
Where is this idea that we need more and more, deeper and deeper assessment of candidates coming from? What problem(s) is this solving to look at large amounts of pre-written code from candidates?