It's a problem because it's not deterministic. You need some kind of determinism when comparing 20 people a month and need to justify your position, especially if you're the only one saying no. The biggest problem is that are you, the interviewer, having a good day or a bad day? In your scenario, your performance is necessarily coupled in with the candidate, which is exactly what you don't want, for this goal of determinism.

I think a modification of this works well, and it's what I do:

1. Come up with a problem that's loosely contextually related to the work, and open ended. Leaving it open ended will test their communication and "problem navigation". The contextual relation allows you to, at the end of the interview, explain how it's contextual related to the work. This helps them understand their own performance, rather than leaving them feeling tricked with random puzzles.

2. If the problem is too out of context for the candidate's experience (which is often fine) provide a path that teaches them the background they would need. Makes this "training" path available and known to everyone. Make sure it doesn't take too much time. This helps the determinism since it doesn't rely on luck of some specific knowledge. Also, someone that communicates they want to go this path is the better candidate, regardless of experience, since information seeking is the best attribute of a colleague.

3. Explain that it's purposefully meant to be an open ended, so they should feel free to ask questions, and it's ok if they get stuck. This allows you to collaborate in a way that you can judge against others. Also, it reduces the adrenaline, which is important, because you can easily loose good candidates who "freeze up". Related, maintain positivity. If you seem annoyed, their performance can irrationally plummet. Personally, I'll do a second round if I see someone freeze up, especially if they haven't done many interviews, because I don't think interviewing for the skill of being interviewed is interesting, since I'm interviewing them to work with them.

4. With the above, the metric for their performance is all about communication, problem solving, and skill. The amount of explanation they needed to understand the fundamental problem, and how well they could fit it in their head, the amount of help they needed to implement it, the amount of mistakes they made, and how they reached out for help can be used to justify your yes or no, in a predictable way, that can be compared against others.

Across about 30 people, my observation of their actual performance, compared to my prediction from the interview performance, has been pretty darn close, with only a few outliers. The outliers were those that were either too familiar, or not at all familiar, with the problem space. The too familiar people appear to have better performance during the interview, since they're working from rote. The out of context people have the burden of not having the relationally-compressed version of the knowledge in their head, so run out of working memory. It's very easy, and somewhat fascinating, to see the moment when someone runs out. But, this is why the problem should be loosely related to the work: it's a valid criticism that "they're going to take significant time to ramp!".

I apologize for the wall, but this is something I'm interested in, and would love to see how others handle it. I think the Jim Keller way is the best, but it requires more than 45 minutes, and a certain level of seniority on the candidates side.