It sounds to me like you did pretty well so don't give up.
From my perspective that is only about 3% of what I expect from a software engineer. Writing readable, easy to maintain code that is well tested, collaborating with product and other developers for how a feature should work, influencing technical designs, giving good feedback are things I value much higher than how quickly someone can write a snippet of code that works.
This is _a_ metric but I wouldn't bet too much on it. I know lots of people that come to optimal solutions to "algorithm type" _much_ faster than I do. I'm pretty slow at that type of stuff. But... its just such a small part of what makes someone a good programmer. Building out a medium to large application requires balancing a lot of trade offs and figuring out how to keep things simple. I know seasoned, quality algorithm solvers who honestly just repeatedly churn out garbage applications. And they can tank the productivity of an entire team of developers in their wake. I don't know how you test for that, but I can promise phone screening for problem solution time isn't it.
How did you arrive at that conclusion? Is it based on data or does it "feel" right based on an easily-measured metric?
Translated: "the one that did it much faster is a more recent graduate and exploitable for 100-hour weeks at below-par pay, hire that one".
Congratulations, now you know how to hire at a tech company!