I agree to an extent, but at my company we have hired a few very intelligent people who ace these leet code algorithmic interviews, but they're at the same time the most incompetent engineers in the company.
On top of prematurely optimising code that executes once in a blue moon and creating an unnecessary maintenance burden, they also lacked any skill in designing codebases whatsoever, and generally pick the worst solution for a problem (which is sometimes detrimental to performance overall, even if the "local implemenation" is great) Most of my refactoring nightmare situations were caused by leetcoders.
Maybw it's just anecdotal, but in my experience there's been a strong correlation.
Also an aside: they tend to be quite a bit snobby/circlejerky and vastly overestimate their skills. IMO, leetcoding is a skill but not the most important one. And also, once you start approaching software as design/engineering, the leetcode will start coming gradually and naturally to you.