I do not understand why companies try to find out how you write bubble sort or a DFS algorithm
Sorry, but I don't agree with this sentiment. Knowing an algorithm is not a necessity, but it still is nuts-and-bolts of the system you are running in. If you do not know/understand basics of bubble sort or a simple DFS problem you there is a problem. Note, that I am not saying, you should know the algorithm by heart or anything, just so much as to create a basic understanding of the concept.
The problem is, if you don't, the day a complex issue comes which might be due to inherent implementation of certain algorithm, it will be really hard to figure out a solution. For instance, if a guy uses Solr and doesn't understand basics of IR or a guy using Hadoop doesn't understand all the phases of Map-Reduce or some complex tasks running a wide variety of pattern matching using some library, IMO is not an engineer who I can trust with a critical system.