How often do LC questions requiring very particular knowledge come up in coding interviews? As an example, LC 932 (Beautiful Array), requires a trick involving reversed binary representation or fast Fourier transform. Assuming you only get ~30 minutes in the interview, how far are you expected to get in such problems?
Basically it's status anxiety that comes from knowing they have trouble delivering products but not knowing why.
Google started this trend but they've phased out a lot of the memorization and gotcha questions. Unfortunately, some companies who are behind the times haven't caught on yet and are best avoided until they do.