I only once ever had an interview as you describe, and from a candidate perspective, it was my favorite! I had fun with it, and it was far more collaborative with my interviewer. I got to learn from them, instead of just regurgitating straight CS knowledge. It was all around a more human centered process. I got to learn that I would enjoy working with my interviewer, for example (this was a smaller company, so probably less applicable at scale-- unless you can continue to have the interviewers be candidate's colleagues, at scale).