I've done 700+ LC and I still regularly get stuck on Meds/Hards, but I imagine if you know all these concepts and can explain tradeoffs during an interview, you have a better chance of passing than someone who immediately spits out a memorized solution but can't explain why they chose that specific approach over another.
And yes, if I ask you a technical question and you freeze, I don't want you on my team. It doesn't mean you're a bad engineer. It means you're not a good fit.
Pretty much sums up how the hiring process is a gamble. So if you don't like somebody and they could be an asset to the company you would not hire them?