I'm not expressing an opinion on live-coding interviews or the choice between them and
probationary periods. I'm changing the subject away from the original subject
-- or rather I would be if "just hire devs and kick them out if they dont fit
ur needs" hadn't already done so.
I was just pointing out that your "that wouldn’t be caught in a live-coding interview either" does not shed any additional light
on the topic I personally am interested in, namely, the choice between a free
market in labor and legal regime that grant employees some job security.
At some point of your society has decided it values job security, the jobs will have to become secured. It is a trade-off.