I guess it is strange to me, as you usually only hear about bad stories. So I was expecting it to be much worse.

I agree, as long as companies evaluate candidates by a combination of different tests, this should be the best for everybody.

Two companies for which I went through the whole interview process had 5-7 different interviews, and only one of them was leetcode-style problem. So even if somebody fails at leetcode problem they should excel at something else.