This is far more real-world than a coding test, imho. Coding happens on the micro level, but understanding happens on the macro level.
This guy has the right approach imo: https://www.karllhughes.com/posts/rethinking-hiring
I'm honestly nervous that next time I have to go out and interview, I'll be in the same shoes as OP. Despite many years of managing software for small companies, I have no desire to go back and re-learn Leetcode just to get a job.
But being able to map the macro to the micro is a vital part of being a competent SWE. This includes being an architect. If your plan only considers macro-issues, but is difficult to actually implement on a small scale, its not a good plan.
I want to gauge both, and a coding test is a good way to measure the micro.