Back in 2015 Peter Norvig discussed an analysis at Google that suggested doing well at coding contests was a negative indicator of job performance: https://youtu.be/DdmyUZCl75s
Presumably they do well at these sorts of questions, but that doesn't imply the same actual effectiveness.
(Personally I would add that human measures of “job performance” can also be quite subjective.)
Yes, implicitly Google can only measure the job performance of people they actually hire.
And who is supposed to implement the robust canned implementation?
And that's fine! A specialized subset of engineers. Maybe that subset is exactly what you need.
I wonder how the stress of the interview process selects out people who understand O-notation and to whom a Trie would make sense if explained to them, vs people who have these concepts fresh in their minds and/or can handle themselves in stressful interview situations.