I don't have issues to show the screen to a friend of mine. Or showing the screen of a work computer to a colleague. However, demoing the whole screen is violation of privacy. Please don't do that, unless you grant VNC access to a machine with a set of popular tools, code editors, etc.
How about reverse bug squash? Interviewer shares the screen with all his/her private info, notes, tabs, development environment settings, shell command history (with maybe autosuggestions turned on), and the interviewee needs to guide the interviewer towards finding the bug?