The biggest misconception: companies hire the most skilled person. They do not. They hire the person who demonstrates they can think through problems, explain their reasoning, and work well with a team.
For designers, process beats pixels. A rough wireframe with a clear story of how you found the problem, explored options, and iterated is worth more than a gorgeous shot with no explanation.
For developers, most product companies test practical building over algorithmic wizardry: can you build a feature end to end, read existing code, debug under pressure, and explain a technical decision to a non-technical teammate?
And cultural fit is a real criterion, especially at small companies where the question in the interviewer's head is "do I want to sit next to this person every day?" Genuine curiosity regularly beats arrogant brilliance.