You may want to look at this through a hiring manager eyes.
Create a job posting on linked in, then review thousands of those CV's, pick people and have a 4 hour interview with each (meaning repeating the same problem, you don't want to have a different 4 hour coding session with each individual).
Then calculate how much time you wasted on (a) outright scam (b) people lying about their experience (c) people nervous enough so they almost freeze (d) people not motivated as if you already owe them something.
Then, you need to realize that you probably need more than 1 engineer and you'd want to repeat the process.
Things like leetcode at least filter out people who can't code and people not motivated enough to solve a couple of challenges. Yes, this will not prevent scam. And then you can filter out scam on the follow-up call.
If you solve this problem of getting qualified engineers to the companies at market rates (not overcharging like some outstaffing firms), where companies and engineers have a pleasant experience, I guarantee you can scale it to a billion-dollar-sized business.