Students learn to game the system to get a high paying job. Students who care about what they are working on will painstakingly try to perfect their projects. They don't have time to game the system and therefore have a hard time getting a coveted job.
Companies want to hire "the best" so they usually hire someone who can ace the company's interview. People who can ace the company's interview are usually those who studied for it.
I recently took over a codebase from an ex-employee who went to Google. People were happy for him but I am so indignant. His code caused me hell. One production bug after another led me to eventually throw out all of his code. His code was written by somebody who did not care and his tests were useless. I'm pretty sure during his time at our company he was focused on leetcoding so he could get somewhere better. I wanted to reach out to him on LinkedIn to give him a piece of my mind hoping it may make him a more responsible engineer but I decided against it. I focused on fixing the features for the users because it was the right thing to do.
I want to work with people who care about the product they are working on. People who care about building great products are not solving coding interview problems.