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Stack Overflow Survey: 80% of developers are unhappy
(shiftmag.dev)
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It's cargo cult mentality. They look at FANGs and see them as success stories, and thus they try to be successful by mimicking visible aspects of FANG's way of doing things, regardless of having the same context or even making sense.
I once interviewed for a big name non-FANG web-scale service provider whose recruiter bragged about their 7-round interview process. When I asked why on earth they need 7 rounds of interviews, the recruiter said they optimized the process down from the 12 rounds of interviews they did in the past, and they do it because that's what FANGs do. Except FANGs do typically 4, with the last being an on-site.
But they did 7, because FANGs. Disregard "why".