- Understanding code without writing it is as viable as understanding code that you've worked with directly or indirectly
- Businesses care that you understand code
I really doubt the first one. Traditionally, understanding a code base in large part came from working with it intimately and building that muscle memory. The idea that understanding code by reading it is as good as understanding it from writing it, in my opinion, is not realistic.
Whether businesses care that their engineers (which they are increasingly viewing as monkeys at LLM typewriters) to understand the code remains to be seen. I don't think they particularly care whether their code runs slow and is buggy so long as it works just enough to churn out features and continue to pull income.