It's more expensive to make a bad hire than to not hire someone and move a bit slower.
https://www.theatlantic.com/business/archive/2013/06/google-...
I wouldn't be surprised to see a similar article about leet code...
The second problem is that the onus is on you on making sure those bad interviews decrease the odds if hiring bad people, instead of increasing them or being irrelevant. Without that evidence, this is a non-argument.