When I first got into the industry, it was much more rare to have coding tests vs. just general interviews, and that meant teams often hired the best talkers or the folks who boasted the most about their accomplishments, and those two skills had very little correlation to how well someone could code.
Even worse, 'team fit' was often prioritized above others, so be it on purpose or implicitly, good candidates from diverse backgrounds were much easier to overlook. When you have the majority of engineers solely focusing on 'can this person solve a problem', it is harder to argue against strong candidates just because they look older/younger/darker/lighter/more feminine/masculine etc.
Take home tests are incredibly biased against candidates without free time, and as I've pointed out in other places, can easily be abused by spamming candidates with them which is just not possible with whiteboard coding.
Coding tests are the best way to hire, if they are done right. They aren't perfect, but so much better than take home tests and 'discussion' based interviews.