This is not true. Not so many people can set up popular and awesome projects like npm or vue.js. These are top level programers. But for other people you can not say they are not good enough to be qualified.
sometimes feels very sad about this since one's value should be reflected by the awesome projects he has done. I think it's just laziness of the FAANG companies. If the interviewer is well prepared and keeps digging the resume, then he should know the candidate is good or not. But by leetcoding, it's simpler for them, just keep asking the repeated questions.