Things like skin color are different from things like leetcode ability. Looking through a veil of ignorance, I definitely would not want hiring decisions to be made based on the former. But looking through the same veil of ignorance, I would be ok with hiring decisions being made based on the latter.

Well, actually, thinking about it again now, I'm not so sure. But this now becomes an ethical question. Which is certainly important. But I want to be clear that the ethical question is a different question from the question of what a purely self-interested company should do. To that self-interest question, I think the OP and lots of people argue that the answer is "leetcode-style questions having nothing to do with the job and are thus a bad idea".

My claims are that 1) this is the wrong way to think about that self-interest question. The right way is to ask whether it is predictive of job performance. And 2) although I also suspect that leetcode-style questions aren't predictive, it's hard to be confident in that without good data.