Sadly, these sorts of “practical interviews” aren’t just limited to Big Tech. There’s been an arms race for thirty years now between applicants and employers, the latter creating new hurdles to overcome and the former finding new ways to bypass unnecessary hurdles.
Employers demanded applications instead of resumes, so candidates used copy machines. Then they wanted block lettering, so candidates used type writers. ATS systems could search for keywords, so candidates flooded their resumes with them. Then employers allowed online applications, and the floodgates opened proper - applications from all over the world, desperate for good employment. So they made you create an account, and applicants wrote or used bots to automate it - which became site features like “Quick Apply” on LinkedIn and Indeed. Practical interviews used to be a single round for only the most senior roles, but then employers wanted everyone to be as qualified as those roles but not pay them that much, which started the cheating arms race.
Ultimately, the problem remains a glut of qualified talent demanding salaries to pay the bills, and employers who want to pay as little as possible. The two sides are adversaries by default, and few companies do the work of mending the relationship into something more cooperative.