It took me a while in life to realise that some people are just made to succeed. These people are typically good to great at anything they put their minds to.
Just because you say those questions are an extremely poor predictor of a candidate’s quality doesn’t actually make it so. It might just be one of the best and most cost effective ways of finding good candidates.
It's a way to get rid of many false positives even if you lose some false negative.
Again, companies like Google can afford to lose amazing devs that can't be bothered to farm leetcode if the trade off is getting rid of those that would not be able to farm those effectively.