I don't agree it's a good indication of competence; leetcode skills are almost orthogonal to the skills required in general programming.

It might be different if you're being hired to develop a new video codec, or distributed consensus algorithm or whatever, but for the typical large web property or enterprise database, leetcode is all but irrelevant.

Code cleanliness, code communication, defensive programming, properly considering edge cases etc, flexibility, API UI design, and how other people interface to your code, etc, etc, all these things matter far more than advanced algorithms, which will rarely be required.