> I don't remember anyone who couldn't pass tests but was really a great engineer.

This is just confirmation bias. Either you're in a field where you must have a degree, so everyone who couldn't pass tests simply never became an engineer (eg EE) and whether or not the test is a good measure is irrelevant because it nonetheless gates your sample

OR you're in software engineering and the people who struggled on tests work beside you, but they don't tell you about their past performance on tests because you have a chip on your shoulder and they don't want you to look down on them.

I failed a lot of tests in college and now I'm a great software engineer.