That was enjoyable for all parties I hope, and a bit weird: a mathematician/quant coworker that I hadn't seen for many years happened to be at the bar so I got him to improvise a couple of questions!
I try to do the same now when I interview people. Pick something that is actually broken, sit next to them, and see how we think through it together. You learn way more than you do from leetcode, and the person is not miserable the whole time.
One small thing that helps a lot: tell them up front it is fine to google stuff and ask me questions. Takes the pressure off, and it is a lot closer to how the job really works.