> Everyone is playing safe and adhering to conventional wisdom.
That's not playing is safe, though, that's playing it wrong.
If the cost of interviewing candidates were zero and the was an infinite supply of actually good programmers, then it would be fine to err on the side of many false negatives for the sake of avoiding false positives, especially since the cost of false positives is high.
But that's not true. You pay a price for every interview, and pay a further price for every day without the qualified help you need. And you're probably in a competitive market -- a relatively small delta between you and your competitors' hiring efficiency might mean they get almost all the good candidates while you get almost none.
Anyway, like I said, any half-decent CTO should be able to fix such an obvious mistake. Hiring is a high-stakes move and it pays to be picky, but it really doesn't pay to be dumb about it.
Just based on my personal experience, I doubt very many people beyond junior or entry-level are going to study leetcode exercises, so you're walking away from almost everyone useful past that level.
Maybe you could give people a choice of problems only good programmers could solve, but of different types, and let them choose the one they want. Leetcode, sure. Or: here's a windows system and windbg, tell me what's wrong. You've doubled your chances. Spend some effort to come up with five or six or seven different ones and you might have something.