Rejected from internal SWE role based on a 45 minute coding exercise with no shared editor. Claim is that the "knowledge gap is wider than team is comfortable with".

My solution was O(Nk) and optimal solution is O(N * lg k). Again I did not write any code. I am being offered a alternative support/operations role with an opportunity to become a Dev eventually.

Total interview was 3 hours, with the rejection based primarily on the 45 minute screen where I did not write code.

What am I missing here?