Earlier quoted context omitted.
Principal Engineer level shouldn't even be tested on leetcode. There are far more important things to know about that candidate.
Some basic level of leetcoding should be fine to verify that the candidate can at least code and is not only a bullshit artist who jumps from one position to the next, failing upwards. I had some interviews, not at the principal level, we had a couple of candidates who were very good during the informal interviews, they could hold a conversation about technology, but they couldn’t code the simplest of problems. I kno…
But I've never seen anyone fail upwards as far as a Principal/Staff Engineer level. Last time I interviewed at that position, no one even asked anything about code. They were more concerned about my position on architectural choices, pros and cons of various approaches, knowledge of applicable standards and regulations (I'm in the medical device field), mentoring and team leadership issues and how to resolve them, etc.