When I was a new college grad, I felt trapped by the fact that everywhere I looked they wanted several years of experience, and I had none yet. How can I get experience if it's required to get the job? Now that I am 51, I feel annoyed that all of these stories of interviews involve asking questions about algorithms that rarely come up in real coding, and if they do you should NOT be rolling your own code, you should…
The top companies with these leetcode tests probably don't care that good people being rejected or avoiding them because of the amount of preparation required. Middle sized companies and startups doing leetcode tests are missing good people and probably can't afford the same number of false negatives as someone like Google with an endless supply of candidates.
I would much rather spend a weekend doing a take home test and showing how I actually work than being asked to write irrelevant code on a whiteboard. I think leetcode style interviewing is driven by time constraints of the interviewer and some more effort and thought needs to be put in on how to choose people based on the specifics of the actual role they are hiring for.