You missed the third type, "write detailed leetcode regurgitating an obscure algorithm for this problem set up to have a very specific answer".
IMO, most complaints about leetcode are about that type. Nobody should need to "grind" to pass the "can you program at all"-type fizzbuzz problems. They're annoying, and indicative of a remarkable failure in our hiring system, but they're a minor nuisance.
Your second type, in my experience, is not typically referred to as leetcode at all, and is effectively impossible to "grind" for.
Unfortunately, my third type is extremely "grindable", as memorizing all the common algorithmic puzzles is a thing you can just do if you spend enough time on it.
The first one if 'write detailed leetcode to solve our slightly different fizzbuzz'
The second is 'we have this specific issue, please leetcode a prototype that will solve it.do not enter in details and edgecases'
The second one is IMHO way better than any other way to find language-agnostic Devs, that's why I'm not against some kinds of leetcode.