FWIW this opinion is based on experience. I've conducted more interviews than I have given. As an applicant I once went through a fairly lengthy interview process that first did a screening interviews including live coding exercises. They were conducted and critiqued in real time. I have no issue with these. You can either do what you say, or you can't and it becomes apparent fast.
The next stage is where I started to question the company's processes - They requested a small "project" followed by an interview. I _nearly_ pulled the plug on this, since it was a request for 10+ hours coding, but did it anyway.
The next interview involved a fairly in depth defense of my code and design choices, white board work that again put my skill set to the test real time. After several hours of this, I was requested to do another "small project" and I walked away.
TL;DR Ask me a million questions, put my skills to the test on the spot, but don't ask free work... I'll think you're unable to judge my skill/confused/a scammer or whatever.