The biggest problem is people submitting code, it being rejected, a working solution using similar principles being accepted, and then accusations of plagiarism. With the same people always submitting the accepted code.
The fact is that their work gets accepted because they followed coding standards and understand how to not undermine the project design. But people who have not internalized coding standards or the overall project design will not see that and get upset that they don't get paid for at least showing how to solve the problem. (Nevermind that the part of their solutions that they point to would have been obvious to anyone.)