For me, leetcode is basically just what is taught at university level. So they're hiring people based on if they know stuff they would learn and forget from university.
The thing is, it's not about having free time, it's about being so dedicated to getting the job that you'll spend ages learning things you would never do during your day job and if you did do them during your day job you would be considered a cowboy because there are predefined libraries that are optimised to do those things.
For me, the main reason I don't want to work for FAANG is they have a reputation for long hours and that the hardest thing at the companies is the interview process.