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Same reason the NFL combine has athletes do the bench press and the 40 yard dash. They aren’t going to do a bench press in an NFL game. Neither are they going to a straight 40 yard dash.

However, those activities tend to reveal information about their abilities that are useful in an actual game.

Similarly, while you may not be doing those coding problems in day to day development, those coding problems can (ideally) reveal information about your knowledge and abilities in hat does apply to daily coding.