Respectfully disagree. It shows that the interpretation of the solution to a coding challenge is highly subjective.
How I use coding challenges when hiring is by first forming my opinion about a given approach. Did this person try to stand out? Does he/she use novel constructs? Stick to what they know? Do they “practice what they preach” on their resume/first round? Etc.
After this, discuss with a colleague to reduce bias/subjectivity. Finally, invite the candidate to discuss the solution. Ask them to review (parts of) their own code as they would a colleague’s PR. This way, the assignment becomes a tool to start a conversation.
At least you get the chance to demonstrate some of your creativity and forethinking with a code challenge. LC style timed questions are just turn off your brain and regurgitate.