It's a very strange filter though. At my current job there's a multi-stage hiring process with leetcode tests. And yet most people lack substantial domain knowledge, it's really frustrating. In fact the code base hardly has a visible architecture
I think every tech-related company looked at the high bar at big tech, assumed the algorithm questions was the only signal (it's not), and have been poorly aping that ever since.
I also think a simple 20 minute discussion between a hiring candidate and an engineer simply discussing how to build something will give you better hiring signals than any Leetcode challenge.
I attended a meetup a number of years ago at a local trading firm, well known for a barrage of impossible puzzles and some simpler, like implement an order book for a matching engine. One of their senior guys did a talk on their trading system. I asked a basic question and the answer was so naive it was shocking. Maybe their best people don't do the talking.