One of my hires was a physicist who didn't know any of the jargon and had a look of terror when she first started on our whiteboard problems. Once we led her to a comfortable spot and she got into it she started talking about tools she made to help with her physics work with zero dev knowledge (she was shocked when we called her tools software, she was like, but it wasn't REAL software, we were like hate to break it to you, but that was not only real software you wrote, but crazy impressive). The white board problems were a tool to highlight potential.
I get that these big companies just want drop in widgets not people and that is what they are searching for, I just think it's funny they are using something that was created for the exact opposite purpose.
Part of me is kind of glad I'm too old to be one of the cool kids and have no hope to land a job that does these sorts of code challenges.