> For example, I bombed an interview in which I had to do a live coding challenge where I had to talk through what I was thinking while coding, which the interviewer insisted on so they could understand “how I think”.

FWIW, there is limited time to collect data about a candidate in the context of an interview, and being able to observe a candidates’ thought process can help a lot with that. Obviously, this biases hiring towards candidates that are more observable, all else being equal.