The people / companies using it to hire will tend to hire people who studied leetcode.
The companies that don't use leetcode / don't use it as a strong signal will continue not using it.
In my opinion, leetcode is a poor signal if used as a binary decision ("were they right or wrong?"). The more important thing is communication and how they worked through the problem. I've heard this multiple places and I absolutely agree: attitude over aptitude. You can teach knowledge, you can't teach attitude or ability to problem solve.
The companies that use them as a strong signal are the ones that will be absolutely demolished in engineering because they are on a fast track for a staff full of rote memorization rather than strong creative problem solving. They'll be handicapped when it comes to solving problems that aren't covered by leetcode because no one there bothered to learn it.