This is my sense. Most companies are just bad at hiring, so they hire a bunch of bad engineers and then go "there's a shortage of good engineers!" No, you're just bad at attracting and selecting a good distribution.
Yep. And those people need to be empowered and listened to enough to affect the hiring process. No great engineer I've ever met said "put them through 20 hours of leetcode, that'll do it." But here we are.