The conclusion that those rejected developers eventually ended up getting a job at another software company and hence they must be able to code properly is fals

The conclusion that those rejected developers eventually ended up getting a job at another software company and hence they must be able to code properly is false IMHO. In my experience there are a lot of dysfunctional software companies out there where people do get hired for software jobs but they all end up doing whitebox testing or clicking around in some Excel sheets.