Personally I think large organizations ask algorithmic questions more because of what it correlates with than what it directly measures (they know most engineer

Personally I think large organizations ask algorithmic questions more because of what it correlates with than what it directly measures (they know most engineers will not be spending much time solving algorithmic challenges on the job), so the system is working as intended. But I do think it would be a good interview question to ask someone to refactor a poorly designed class structure in order to add a new feature.