Some proportion of perfectly good engineers couldn't pass a whiteboard interview to save their lives, for much the same reason I couldn't pass a job interview that measured communication skills by karaoke performance and emoji literacy.
The company needs to evaluate your problem-solving skills though. I mean, I'll admit that writing code on a literal whiteboard is more physically arduous than on a keyboard or even a piece of paper, but if the root issue is live coding challenges themselves, I don't see a way around it.
Some companies look at your GitHub profile instead, which imo is much more unfair, because it presumes you've had the free time and the desire to work on side projects, which shouldn't be a requirement for a job.
Maybe companies should adopt an either-or policy? Give the interviewer the option to demonstrate their skills in the form that works best for them.