There are code smells, side effects, errors, confusing syntax, a whole slew of things in it. I give them the code, tell them I'll help with every bit of python syntax (and really emphasise that I don't mark people down _at all_ for any lack of familiarity with python / python syntax), and ask them to work through the code and do a code review.
There's some python specific quirks that I largely consider bonus points at best, but anyone with any appreciable familiarity with at least one language should be able to spot a number of things. As they call stuff out, I'll dig in (or not) as seems appropriate.
So far it seems to be working out great for me as an interviewer. Candidates seem to be way less stressed than they are with a "whiteboard coding" exercise. Good discussions are showing me their development skills, etc.