When this all began, it was with the justification that it's not about getting the right answer, it's about seeing how you think and approach a problem.
Companies don't even pretend this is the case anymore. It's now just expected rote memorization of algorithm patterns, talk about it with the right terms and key phrases, still pretend like the candidate had some brilliant "aha" moment, when both sides know it's bullshit, and write the solution on the board as fast as possible without errors.
A completely pointless process that's now heavily pushed by an entire industry of tech interview prep (websites, books, interview coaches, etc.) When I now read a discussion about tech interviews, I wonder how many are industry shills who want to keep pushing the narrative that the process is great, but you just have to keep practicing and studying more, using the right materials of course.
There's also the side effect of ageism. Who other than college grads or seniors in college has the free time to study for this process? Those with families and full time jobs are of course going to have a hard time. Even if they manage to find some free time here and there, how can they compete with someone in college with no responsibilities who has time to hundreds of problems? The simple answer is they can't. The college grad will always look smarter and faster in the interviews.