The only engineering firms I've interviewed for which had rigorous technical interviews, were consulting firms. Most other firms were almost exclusively focused on soft-skills and personality, and then some pretty softball technical questions.
That company sucks then. It might be hard to measure between competent engineers but bad engineers stick out like a sore thumb. If that keeps happening it means the entire engineering department sucks at those companies.
When I say prestigious jobs, I don't mean random companies you've never heard of - these include companies well known for their engineering excellence. I don't know how their careers advanced, so maybe they quickly found themselves looking for work elsewhere. No hiring process is perfect. We've all had to deal with less-than-excellent coworkers.