They don't even need to go to that extreme. Probably a majority of their qualified applicants are screened out via their leetcode and high-stress interviews. They tell congress they can't find capable employees then tell applicants they only hire the best of the best.
Yeah that's true. But I'm not sure how the costs for that will work out at scale considering software is a high attrition industry with career advancements done mostly through lateral movement.
> software is a high attrition industry with career advancements done mostly through lateral movement
If employees invest in training up employees (and more than just the standard HR pablum anybody who isn't a complete sociopath already know and the sociopaths spend their time trying to game all of the parts of the system) then the incentive will be to retain them else they will have to go through that training from scratch again on whomever they hire.
If you give people a place to work where they don't constantly feel like they're fighting fires, where they're not always begging for a raise, and where they're at an office designed to cater to the needs of employees rather than employers then you'd be surprised how long most workers will stay there.