Actually, anytime somebody finds a way to engage students to think in a different way than just trying to memorise facts is a win, IMO. I think it is lamentable that students are asked to rely more and more on recalling facts at the time where it is becoming less and less important compared to critical thinking. This is lazy way to do something about structural education system issues. I can't even call it "solving", because it is not really solving any problems, just ensuring purely educated students.
One of my programming interview question is a flawed piece of code implementing an algorithm. The algorithm is there in its entirety, so there is no need to actually recall the details of it. The task is to point out and fix functional flaws, then critique and fix non-functional problems.
I find this gives me much better appreciation for the candidate compared to a standard hit or miss test where the candidate is asked to implement an algorithm and they may or may not have the luck to know or come up with an answer.
It is also practically impossible to prepare for or cheat even if you somehow get to know from recruiters what you can expect (they do ask people and they do prepare candidates...)
A long time ago I had people cheat by using materials on remote interviews (which I did way before Covid). Now I invite them to use external materials or even ask questions ("This task does not require anything outside the standard library. I don't care if you remember it, if you can describe what the function does I will gladly tell you the name and describe how it works exactly.")