NOBODY HAS "FIGURED OUT" HIRING !
Not Google, not Apple, no one. Sure, some places (and individual interviewers) are better at it than others. But at the end of the day, hiring is a deeply subjective process with lots of error and uncertainty built into it's nature. The subjectivity is intrinsic.
Places like Google can afford to be nonsensically picky and not suffer drastic consequences from it. They have a thick, never-ending stream of highly qualified candidates. At their volume of hiring, it doesn't matter to them if they screen out some folks that would have been brilliant hires, nor does it matter if they hire some promising but ultimately disappointing duds. All of that is OK.
Sadly, however, it seems that small shops are trying to cargo-cult Google's hiring practices. That IS harmful to the company and the candidates, IMHO. I think folks in these non-FAANG companies should get trained on how to conduct interviews, especially if they're interviewing non-senior candidates. Interviewing is a skill in itself. It's not something that comes automatically with expertise nor is it something that can be left entirely to HR drones.