Isn’t this basically triplebyte? I did their process and every company still wanted to do their leetcode interview after.
I've considered something like that for my current company, which is doing basically the same thing, but:
(a) this has not, in practice, been a problem for us in identifying good candidates
and, far less importantly:
(b) you need very high scale to have interviewers everywhere that candidates are OR you're paying extra for a third-party controlled environment
(c) scheduling and cancellations become more difficult and costly respectively