Aside from all the comments saying that coding challenges aren’t as unrealistic as you think, there’s also the fact that there seems to be an oversupply of good

Aside from all the comments saying that coding challenges aren’t as unrealistic as you think, there’s also the fact that there seems to be an oversupply of good enough coders for some roles so companies need to filter beyond that. Yeah inclusive environments etc is a nice to have but if you can get a top level coder that can solve problems quickly and not crumble under time pressure, even better. Why settle for good enough if you can get really good instead?