I am very willing to be shown to be wrong, however let's simplify this. Indeed charges per candidate, and therefore is incentivized to provide the maximum number of candidates. Hiring companies want the smallest number of candidates, that are most likely to be right for the job. In other words, if you had an AI with infinite capability and resources, it would only recommend 1 candidate which would be the perfect person for the job.

How is Indeed's interest in the most candidates and a hiring company's interest in the fewest but most qualified not a conflict?

FYI this isn't speculation. I hired for hundreds of positions for years using Indeed's platform. Maybe the pricing model has changed in the 2 years since I used it. If that's true I'd be happy to hear it.