We _know_ that the hiring process is full of biases and mistakes and people making decisions for non rational reasons. Is an LLM more or less biased than a typical human based process?
Being biased isn't really the problem
Being able to identify the bias so we can control for it, introduce process to manage it, that's the problem
We have quite a lot of experience with identifying and controlling for human bias at this point and almost zero with identifying and controlling for LLM bias
However, instead of using that known human bias to justify pervasive LLM use, which will scale and make everything worse, we either improve LLMs, improve humans, or some combo.
Your point is a good one, but the conclusion often taken from it is a shortcut selfish one biased toward just throwing up our hands and saying "haha humans suck too am I right?", instead of substantial discussion or effort toward actually improving the situation.