The problem you are describing is interview variance and hiring bias, not leetcode. This happens irrespective of interview style.

Many companies have question banks that are specially designed to be fair/have some contextual relevance (ideally) to some "realistic" problem. Or at least, many of the companies I've interviewed at follow this model. I consider these coding questions to be "leetcode" style because at the end of the day they are an isolated coding problem, even though they may not be a problem from leetcode verbatim.

Companies that execute on that style of interview well are generally fairly pleasant interviews, at least in my experience. Good companies/interviewers will gauge more than just the final code to determine a hire or no hire. And a large portion of companies also have hiring ratings on a scale to make it less binary.