As someone who interviews i support these tests, my reasoning is very different
1. Applicants getting hired because the manager and the candidate is from the same institute or they like the same team or band.
2. Bias based on age or race. I try to remove my own sub conscious bias as best as I can but most don't.
3. HR thinking you are not good enough and rejecting because you did java 18 and not java 19. Or you can write impressive React but haven't done Vue.
It takes the managers and HR a little out of the equation. They just rubber stamp your decision.
Take home exercises are something we tried but the incidents of cheating were so high and good code is so subjective that we gave up.
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