No, coding tests are not the "literacy tests" you have described, and if they were, why would some minorities be performing even better than Caucasians on them?
Coding tests examine the type of work actually required to be done on the job (as coders), and they have been correlated with post-hire performance successfully. Someone who is not familiar with efficient data structures will not write scalable code and will end up creating a burden on their teammates during on-call, for example. Asking someone to solve an engineering problem with a provably correct answer is an objective test for hiring engineers, and I will have a difficult time continuing to engage with anyone who counteracts this basis of reality and truth.
When I was hired there were three coding test rounds and one interpersonal round. You might argue that the latter is where racial discrimination seeps in, as well as the recruiter outreach step itself, but somehow I am optimistic that a bunch of tolerant Californians have moved past applying a Literacy Test here already by hiring a majority immigrant / minority workforce. In my situation, my recruiter was also an Asian-American minority.