That is different again from coding on a whiteboard. Pseudocode could be handy although, again, I would prefer people to work it out first and then explain what it does after that. It is very different to explain some idea for a project you are in with your colleagues to them vs standing in front of a strange interview panel producing something that they can theoretical type in and compile. They are hardly related imho.

Exactly this. And we didn't use 'toy' problems like FizzBuzz either, it was 'connect to our DB, pull the following data, do some computation, present it in a UI' kind of stuff. We did this right in the office with the rest of the team so candidates were exposed to our everyday work environment. Got some really great devs that way.

We agree but this is different than what reads from your comment. I am not native English but reread it a few times now and it still reads like you approve with the OP in coding on a whiteboard as interview practice and calling that a softskill.

But yes what you suggest here is what we do. And that is actually fun for the coder (if not highly anti social) as well as it is for the team too.