Then I noticed the test was expressing constraints using time/space complexity, concepts I was completely unaware about for my previous 15+ years in the profession.
So now I am reading about algorithm theory face-palming at the realization I have reinvented the wheel many times during my career instead of just re-using a PhD. researched algorithm.
You seem to be confusing "knows how to say 'oh of enn squared'" with "the loop gets slow when I iterate over a lot of things". One is generally a product of education, the other, merely experience.
The idea that a thing can only be learned in a classroom is perhaps in the top ten most pernicious ideas in the modern world, and probably one of the more surprising ones to show up in that list. You do not need special courses to discover that your code runs slowly, and as I've seen often enough, having had those special courses does not confer immunity against writing slow code.
Now, I am also a believer that formal education has its place, and if you are going to get a formal education in computer science, big-O analysis absolutely must be part of it or you are literally missing out on an entire rather important sub-discipline. But the idea that it's some sort of touchstone between Good and Bad programmers is just ludicrous nonsense. Slow code is slow. There are abundant tools that can be used to figure out why. If you can't work out why your O(n^3) loop is running slowly after a couple of years of practicing the art, you don't need formal education, you need a different job.
Sorry, but this is just wrong.
I can guarantee you that BigO is very often used not "in theory", but in practice, to find real-world performance problems. And not having "situational awareness" of certain commonly occurring complexity profiles can be a significant source for performance headaches and technical debt.
One trivial-seeming, but frequently occurring example: not knowing when to use hash maps.
In fact, many people solve performance problems (including both those where order-of-magnitude performance really is the most important factor, and various other kinds) not by using a profiler but by, you know, understanding the code and thinking about it. Being as profilers, while they can tell you a lot about certain kinds of performance issues, are still generally quite limited in what they can tell you.
Is it the silver bullet people seem to think it is? No.
Of course not, and I've never heard anyone saying that it was, either.
It's like, yeah, you don't "technically" need to know any 2+ syllable words to be a programmer, but you're really not helping yourself by avoiding them.
The other thing that really seals the deal for me as an inferior interview question is that you don't need to have a clue what O(x^n) is to wrap some code in a simple time call, see that the code you think ought to run in microseconds is running in seconds, by visual inspection notice stupid nested loops, and fix it. Self-taught programmers may not be able to say "O of exx to the enn" but that doesn't stop them from fixing it.
So... seriously, what good is the question anyhow?