There's been a lot of threads like this recently that discuss changing the hiring process to more closely resemble day to day work and working with an actual codebase.

My question is how does this work for new grads and people that haven't worked in the industry before? Are they using these new techniques to hire recent graduates/people that haven't worked as a software dev before? Does this kind of process adversely effect those who haven't worked as a software dev before?

I'm not trying to say that algorithmic/leetcode type problems are a better solution, but rather questioning whether this form of interviewing has some kind of bias.