True. More stress than an untimed take-home, but I would think less stress than a normal interview (for most engineers, at least).

And the reality is that a lot of/most people interviewing in those type of situations arre very well familiar with time-boxed exams at school. (And even with take homes the reality of final exams as I recall is that you mostly didn't have the hours in the day to spend an outsized amount of time on one course.)