The reality is that AI just blew up something that was a pile of garbage, and the result is exactly what you'd expect.
We all treat interviews in this industry as a human resources problem, when in reality is an engineering problem.
The people with the skills to assess technical competency are even more scarce than actual engineers (b/c they would be engineers with people skills for interviewing), and that kind of people is usually very very busy to be bothered with what's a (again, perceived) human resources problem.
Then the rest is just random HR personnel pretending that they know what they're talking about. AI just exposed (even more) how incompetent they are.