I feel like chiming in because the way the parent described things makes me sad about the state of interviewing and I personally would be very turned off by this kind of interview.
I'm actually a little shocked that this person whose job it is to interview and hire people seems to say that all these basic things like setting up for the interview, reading over the person's resume, and so on are /chores/. I mean, maybe they're not the most fun things I agree, but the approach seems way off, as if they're just trying to get it over with and check the boxes. Then they talk about defusing stressful situations multiple times, why? I get the feeling that they're creating a stressful environment for both sides.
Then the coding while watching part. That sounds just awful, I'm sorry. While this is part of your job within normal hours, the candidate is likely taking time off or doing it after hours (unless they're unemployed, but still). I don't know how you're actually "giving hints", but this just sounds really uptight and stressful. I'd wager you're really taking people out of their environment and setting them up for failure by doing this. Why is it a problem that they google the answer to your question? That doesn't strike me as wrong at all. Sounds like a good developer and I could see this going into a very healthy discussion about how they'd solve problems perhaps that weren't so obvious from googling.
I don't mean anything against the parent. Just adding my $0.02.