If you’re referring to body shop consulting agencies this may be true, but IME as an IC consultant in DS/ML, my rates are well above Staff+ at FAANG, and nobody has ever tried to leetcode interview me. Yes, I have to do a lot of smooth talking, but performance is extremely transparent: if I don’t deliver, I don’t get paid. Honestly I doubt I could pass a leetcode style interview, and I’m glad I don’t have to do that anymore.