In the context of the parent comment which described how leetcode-style interviews are discriminatory, you have just nicely described nicely why the leetcode-style interviews are because companies are afraid of APPEARING discriminatory in hiring, and provided other methods of plausibly-deniable discrimination.

If they want to be really undiscriminatory, the interviewer and interviewee need to not be able to see each other, and even real names (which can indicate gender and ethnicity) must be hidden.

When orchestras started doing auditions with candidates anonymous and behind screens, they ended up hiring a LOT more women and minorities - even when the selection committees had previously thought they were trying to be nondiscriminatory.

Deeply embedded biases are really hard to root out, even for ourselves.