Right, if you can't do any of those and can only do leetcode you will get hired as a junior. Do you think that juniors need those things? No, of course not, they need to learn that on the job. So juniors gets leetcode. Now, since all juniors can do leetcode, why shouldn't we require seniors to also know it? Otherwise we would hire seniors who are worse than the seniors we grow ourselves. You can say that seems like an arbitrary requirement, but it makes sense, and there is no lack of senior engineers wanting to get hired at FAANG. And getting X years of experience isn't an accomplishment, even the dumbest software engineer will get there after X years.
Of course you will gain experience anyways over time. But all your leetcode skills will fade into meaningless very fast when you see what the actual problems are.
I have been meaning to go back and grind some of those problems out again. Just to refresh my memory on them. But notice I have to 'refresh my memory'? These problems usually do not come up. You are usually clicking some if conditions together and a few for loops. Nothing fancy. The interesting bits are figuring out someone elses framework using docs written in an afterthought and what 3 other methods do I need to call to fill out param 4 of this method just so I can get this thing to do what I want.
Imagine a math professor would be required to be as fast in answering questions regarding times tables as a child in third class. I bet you wouldn't be able to hire almost any math professors any more because almost all of them would lack this skill!
Nobody would be of course so stupid to judge a math professor by asking them questions about the times table.
Well, but one, and only one, industry is bonkers enough to do exactly this.
When I was young I also was pretty good at these interviews and loved doing coding contests and such for fun. However when I joined a big company I learned what really is hard about software "engineering".
It's dealing with legacy code, finding and fixing bugs in highly distributed systems, understanding tickets from customers, managing integration of different components, balancing tests to be enough but not to be too much.
In general the hard tasks are very rarely one specific well determined problem such as finding a node in a tree in the most performant way.