This is only true for companies that have a large talent pool e.g. FAANG companies. For some small 30 person business in the back of nowhere that wants you in the office 5 days a week they cannot be anywhere near as picky.
This is why these big companies do it, because it is actually quite hard to be fired from someplace like google whereas at these small companies you'll be working directly with the owners.
Also people will do all these take home tests and 5 rounds of algo interviews and CCAT tests ... etc for large well known companies as it is prestigious to work for them. They literally won't do them for small companies. For small companies unknown companies all you'll get is desperate people you are actually filtering out all the decent candidates. I went through this process last year it's very hard to hire as a small unknown company.