Just went through this process from the POV of employer. The risk of choosing the wrong person is so great, that it's often better to not choose anyone. If there is any doubt what-so-ever, it's better to not make a a hire, it can be too damaging to a team, manager, company. I've tried so many different "coding interview" scenarios. But I found the best one was a real task that a real staff member would be expected to…
"The risk of choosing the wrong person is so great" I assume you don't live in the US or if you do, please elaborate because in the US there are virtually no such risks with at-will employment. It's so incredibly easy to fire people in the US that such an idea is actually ridiculous, yet people keep bringing it up all the time as if it's real.
Worse, if you have someone who just doesn't play well with others, there are no grounds for dismissal. You end up having to cook up some sort of severance package for genuinely toxic staff, and hope they hate the environment as much as others hate them.
"Please take this package. In the long run it will be better for everyone" and hope they see the light and walk.