You may be focusing on the leetcode label, and not the rest of the fail-fast zingers that are ubiquitous. Only a subset are actual leetcode. The first mistake and you're done, due to the high number of applicants.

If you've got networking to let you bypass the BS, that's great. But most interviews (by number) are "cold" interviews that conduct these almost exclusively. Due to lack of trust and extreme fear of failure.

The only offer I've received in years was because, while they did this type of test as well, they didn't take the results too seriously. One out of maybe a hundred attempts that year.