While the gameplay in your first game may still be simple, it can look great because the engine does most of the work. It absolutely won't look like something from a C64 (unless you want it to).
That said, I have no patience for the "smartest boy" syndrome or the, as you say, "LeetCode-like problems" given in interviews.
I suspect that these interviews do "work" in the sense that they successfully filter those who know what they're doing (albeit rejecting numerous ones who do as well), but they run the risk of encouraging elitism, rockstars and "smartest boy" cultures. (I also think programmers are uniquely bad a hiring because when we can't reduce a problem to something solvable by an algorithm, we tend to try to find the cheapest heuristic.)
The students were asked to write out instructions to build a paper airplane. One by one, I would follow their directions as loosely as possible and build lopsided airplanes. The lesson did a reasonably good job of explaining how computers handled algorithms and code.
The biggest impediment to much larger participation in the top tiers of software engineering is imposter syndrome and the elitism of the industry when faced with a trainable candidate. Every startup aims to hire someone who can "hit the ground running" and who doesn't need an assist from anyone.
Also, the largest tech companies have chosen to use LeetCode-like problems almost solely to assess candidates, which are unlike most tasks done on the job most days. These tend to select for people who trained specifically for the interview and for coding competitions, such as ACM.