The bigger issue (I find) is that the pipeline for finding those engineers is completely fucked.
Hiring pipelines that tested the wrong thing have existed for years but the problem is magnified 10x when you test for something that weakly correlates with ability at best which an AI can do better than a human.
This is leading to stuff like incompetent junior-level engineers being hired as principals.
My company's hiring process is basically: Can you code a product quickly with AI? Can you understand the generated code?
That's basically it. It is surprising hard to find people that can do both, but engineers are becoming much, much better at the first gate while flaming out on the second.