These companies treat it as though if you can't recite a leetcode answer line for line then you're no good.
A software developer skillset is a lot more varied than reciting 5 leetcode answers for algorithms you won't ever use in production code 99% of the time. And that 1% of the time you do? You're just going to Google the algorithm again anyway.
It's an almost pointless interview exercise.
In my experience the leetcode questions were quite easy from an algorithm standpoint: string operations and traversals and things like that. You are judged not just on correctness but also your communication, requirements gathering, ability to catch edge cases and bugs, and general code quality. In other words, things that are absolutely relevant to the actual job.