it is not so simple to regurgitate pre-learned answers when you alter a problem one small attribute at a time, in each case a different answer becomes optimal, thus you can see if the person understand what needs to be done or not
i feel very strongly this is a disingenuous claim. clinical psychologists go to school for a long time to learn how to assess people's abilities to think. why should i believe that you a random software engineer have any competency whatsoever. in reality this is exactly the reason standardized exams (or standardized interviews such as leetcode style problems) exist - because average person can't accurately make that call.