100%.

For me, "hireable skills" (for a new grad) are things like "can do a basic whiteboard exercise". I'll ask them to sketch out a program to solve a business problem. I do higher ed software, so usually start with "build a class registration system from scratch" - they're recent grads, so the problem domain is known; there's plenty of space to discussion to move in several different directions; fits nicely in 20-30 minutes.

Bare minimum, I'd expect them to ask clarifying questions (particularly around system constraints, performance, etc). And then sketch out a very basic system diagram (I don't expect them to know AWS or Azure, but do want to see things like "ID provider", "course catalog", "waitlist service", etc. Then I'll pick a service and have them pseudocode some of it.

Sadly, somewhere around 50% of grads CANNOT do the above. I'm not sure how, but I've left interviews thinking "I hope they get a refund" more than a few times.