I have never understood this argument. With 29 years of experience, I am about as far from being a "recently graduated person" as anyone could be - in fact, I never graduated at all! Not only did I drop out after three semesters, I never took so much as one computer science class.
I have, according to your assumptions, never had algorithms knowledge in my active memory - and yet, these sorts of questions have never been an obstacle for me. How can this be?
I think many people must mistakenly believe that interview questions are the same sort of questions one might find on a university test. They appear to believe that the interviewer expects them to regurgitate a correct answer, on the spot, from memory, and that their suitability for the job is rated based on the speed of recall.
That would be absurd, of course. If anyone is actually interviewing people that way, they're doing a terrible job.
I have never answered these questions that way - and, when I ask such questions in an interview, I never expect them to be answered that way.
Rather, the point of an algorithms problem is that you have to think your way through it. I solve them in the same way I would solve any problem I encountered in my day-to-day programming work: by thinking about it, poking around at different approaches, roughing out a simplest-possible approach, then refining toward a more efficient process.
If I am interviewing you, and I pose you an algorithms problem, I'm hoping you will not have memorized an answer. If you already know the answer, your skill at writing it out on the whiteboard tells me nothing. The whole point of asking you to think your way through an algorithms problem is that I want to see how you think. I don't even care whether you find your way through to a correct answer in the time allotted, so long as I can see that you know how to think about a problem, work your way toward a solution, and communicate about your process as you go.
The common idea that experienced devs ought to struggle with algorithms questions dismays me. What are people doing that does not require them to maintain basic problem-solving skills? Or... perhaps... is this all a big misunderstanding...