How much time do you allot for this thing? Cloning the repo, dependency installs, server/DB setups, possible build steps, configuring the IDE to the project ... even if the whole thing is containerized, just going from nothing to running code in an IDE alone could be expected to take 20-30 minutes of the interview.
I think there's a valid point that any IDE != a candidate's local setup. But I think there's a compromise there - we try to offer a variety of common IDE's + a few mins of prep to download extensions, etc before you're thrown in the thick of it.