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Given current AI trend, live coding sessions are transforming a lot as well. I can see more companies leaning towards virtual sessions with "prepare a blank project with your favorite IDE, share your screen and let's go". This means, that the companies acknowledge that the AI is a little trick a candidate can utilize to make a better impression.
On the other hand, this is just interviewees adapting to a relatively high standard that the industry did set. It was discussed a ton of times, how other jobs don't require a person to present the fitness in such a rigorous manner. When companies treat every other candidate as an impostor.
Not only a candidate should be a jack of many trades but also be humble once they get put into a job that may not necessarily require those algo and system design skills right away or in a year's time.
We all know that. But I'm very curious to learn how it all started, who set the "Olympic team fit" standard.