These questions are basically fizzbuzz for those who have done the work. But you'd be surprised how many people do things for absolutely no reason.
The downside is people tend to hire them anyway when they flunk the technical interview but have excellent leetcode score. One is fairly subjective, the other is objective, and people tend to lean towards the subjective one. You can work around this by having two technical interviewers, but they have to be fairly senior enough to trust.
etc etc
Edit: I help with hiring at the company i work at, and i like using open ended questions
Nobody I’ve ever interviewed with has used LeetCode style problems as the only factor. You need to create a hiring process that has a multi-faceted interview process and evaluates the person’s entire work history, abilities, and communication during the interview.