Same with leetcode at startups. It makes no sense. You’re almost certainly not going to do algorithms work. It’s only relevant if you’re looking for people willing to grind bullshit, which is certainly some jobs, but, again, you’re almost never doing this under arbitrary time pressure with someone watching over your shoulder judging and not helping.
My advice: if you encounter this, don’t work there. If a company doesn’t value testing relevant skills for candidates, don’t expect leadership to be strong critical thinkers once you get there.