A good analogy I’ve been told is the NFL combine. Vertical jump, straight-line speed, and bench press performances are probably moderately correlated with on-field performance, but the best test of playing the game is playing the game.

I more understand the emphasis on leetcode problems for juniors but a timed session without an observer (perhaps with browser tracking) to solve those problems makes a lot more sense than bringing in the anxiety of the observer, as you’ve noted. It sucks having to spend mental energy wondering how your problem-solving looks to whoever’s watching and seems actively detrimental to assessing talent for an IC role.