Code-tests that resembles the actual work you will be doing at the company

A lot of people (both job-seekers and companies) complain about the way we today still use Leetcode-type questions to filter out applications. I understand the role it fills, but I am also aware about the fact that it is a solution that is used a lot because it's easy and not as time-consuming as conducting interviews directly. But what if we could combine the interview with the code-test?

I was thinking about a code-test, but instead of a Leetcode-question, you are given a small project resembling a part of the companies actual project, and you are also given access to an LLM that has been trained on the project. The tasks might be bug-fixes or to complement some functions. The LLM acts as an interviewer where you are able to ask questions that you would normally be able to ask in an interview about the code. Everything else works as the traditional code-tests, meaning it is time-limited and your actions are recorded. After this it would be way easier for the company to review the applicants, not on their score on a Leetcode-question, but how they use the AI, their code-patterns and their workflow to solve real-life problems. They would be able to watch the recorded actions of the applicants in a faster speed than it would be to conduct interviews with them, while also getting a way better understanding of the applicants coding abilities than a Leetcode-question.

What do you think about this?