Is doing interviews in an IDE and expecting fully functional code actually a thing? My company uses a simple text editor: perfection is not expected, and it's still way better than a whiteboard.
I can confirm that this is a thing at multiple companies.
Instead of of testing the actual algorithm, you'll encounter such blasts from the past like: "Network Socket Debugging", "How The Fuck Does Java Read From STDIN?", and everyone's favorite, "Why The Fuck Did You Give Me Text Data In CSV Format?"
I have seen this go well exactly once. And they provided an environment with a working (albeit do nothing) scaffold along with test data. Also it was like a three hours in a room.