Indeed, Leetcode tests algorithmic knowledge but no domain knowledge. I work professionally as a front-end developer and I dread losing my job because I could never pass a Leetcode interview. I can thoroughly reason about web development, I know the stack front and back, it's my passion... but a Leetcode interview doesn't test for that at all.

I think every tech-related company looked at the high bar at big tech, assumed the algorithm questions was the only signal (it's not), and have been poorly aping that ever since.

I also think a simple 20 minute discussion between a hiring candidate and an engineer simply discussing how to build something will give you better hiring signals than any Leetcode challenge.