I think once you start measuring the time and space complexity of your algorithms you will be more aware about performance and prepare your code to handle big amounts of data. And that's important for companies, to verify that you, as a candidate, know all those concepts.
Yes, I agree with that assumption. Give the candidate a problem to solve and assess whether or not they in practice they used the most performant algorithm. We don't need to have a discussion about all the different algorithm that could have been applied to the problem. I find too much time is wasted focusing on this singular topic in interviews.
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