Most programming interviews are a waste of time and energy for everyone involved and the results are, for the most part, a complete facade. Asking puzzle questions gives interviewers the feeling that they're really testing hard for top talent, when in reality they're just demonstrating their lack of interviewing skills.
I recently interviewed managers at two different technology companies, both nationally known, for a report I am working on. Most managers admitted their technical interviews were flawed, but didn't know any other way to assess skills. They also admitted that a significant number of people they recruit refuse to even take the technical challenge and end up working elsewhere.
In interviewing a couple dozen engineers, I found most just don't want to waste their evenings and weekends on a technical puzzle for a job, especially when there are a lot of companies out there who don't bother with them, so they end up searching for companies that don't waste their time with technical challenges.
Another funny thing I discovered during my research is that just under half of the employees at both companies I've interviewed so far were not able to successfully complete their own technical challenges.
Another problem with technical challenges is that often times the interviewer knows less about the topic than the interviewee. I recently went through the interview process with a local technology company who uses Elixir and Go (both of which I know). During the onsite interview, the interviewer kept saying things like, "Don't forget to..." or "You forgot..." I kept explaining that I didn't need to do as he was suggesting. In the end, my code worked, my tests worked, and I passed the interview. In spite of this, I was rejected because the interviewer, "Wasn't feeling it."
I still have a lot of research to do, but I haven't found anything, so far, that suggests that technical interviews predictably result in top-talent getting hired. It seems to be the same crapshoot interviewing people without using technical challenges is, because in the end, most people decide within the first couple of minutes if they like someone and hire based on that, regardless of the rest of the interview process.