If you're not in a hurry to leave your current position I'd recommend pushing back against leetcode/hackerrank/algo code challenges in interviews and only take interviews with companies that have an out-of-the-broken-box interview process. I've found the best companies are the ones that don't follow the FAANG interview methodology.
Isn't this statement self-contradictory?
One of the hardest tasks for a company, especially right now, to do is to create the resume funnel. So I know some startups try to hack it and create FOMO on their hiring funnel, which is what the claim you heard sounds like to me. Yes, certain brand names will get crazy number of applicants, but that isn't the case across the board.
General jobs/economy reality. The more positions open when there is low unemployment (relative to the position) the smaller number of applicants per position, and the pickier the applicants. The fewer jobs open with "high" unemployment the larger and less picky candidates become. After the dotcom bust, when I was hiring we would see 500-1000/month resumes per open position in some cases, just insane; yet, before the bust we would see < 100/month usually, even at highly known companies.
I should also note that you should avoid companies that consider you a resource ;)