For what it's worth, if you were interviewing for a security job and couldn't solve the longest increasing subsequence problem within a minute, I would probably say "no hire". All security folks I know can solve such problems in their sleep, and it seems really important for the job. Or at least you'd have to show your algorithmic skills in some other way, without relying on "business" rhetoric. Does that sound reasonable?
This is a false correlation. What is it about longest increasing subsequence that is relevant to security? If you can't explain, then it has no relevance and means nothing.