The first thing you start to realize when interviewing is that every company has their own unique process for interviewing. The second thing you realize is that you're not going to ace every process every time, it's a roulette wheel you're spinning to see if this specific process and this specific day and this specific set of interviewers and this specific mood you're in are able to align in a way that they feel confident giving you an offer (leetcode or no leetcode, doesn't really play in to this factor).
The nice thing about leetcode tests as a candidate is that you can study for them, go through a few rounds of it with different companies, and get better at it and know how to improve for the next interview. When companies drop the leetcode tests you end up getting judged on the arbitrary criteria and testing that they devised in its place. If you come out of that interview not doing well, you can't really use that as practice for the next one -- because the next company you interview at may have a process/test that doesn't overlap at all with that previous interview. Now you don't have to practice leetcode and spend an hour doing something that's not directly applicable to your day to day job, but instead you're subjected more to the whims of randomness and whether you were prepared to satisfy the process they came up with instead -- which may not be shared by other companies.
Leetcode isn't great, but it's also not that bad. Some companies (i.e. Google, Facebook) you will have to get very in depth with practicing and knowing data structures and algorithms to do well in the interviews. A lot of other companies you can pass the leetcode with a lot less work, just need to have a basic refresher on graphs, trees, linked lists, etc. Other companies yet, they won't ask you leetcode at all (but that doesn't mean the job/company is good in other areas either, it's always a tradeoff).