Are you sure you're not just mostly seeing the candidates who are using LLMs to pass through the earlier screening phases with flying colors despite their lack of skills? (i.e., they haven't atrophied, they just weren't very good to begin with). There's always a lot of unqualified applicants to a job but LLMs can make them way more effort to filter out.

We have the coding test as the second phase now for specifically that reason, and might have more once they’re doing the full interview set.