If the interviewer cannot do this, how is he going to judge the result? Does he know how to run a compiler? Does he know how to run the code? Does he have the skill to judge the output? Is it really a good policy for a company to discard a possibly excellent candidate that just missed something silly that would normally be checked by a tool while you type?
And if you fail to communicate the requirement for one or the other then you're certainly not a competent interviewer.
You also have to ask what exactly is being tested here? Is it the ability to remember syntax? To remember an algorithm? To improvise an algorithm? To recognise which algorithm is needed?
What, exactly?
In my view, if the answer involves a topological sort the interviewer should know how to solve it and be able to follow and find errors in the candidates code. If the interviewer, knowing the answer, cannot find any issues then surely the code is fine (for code written in an interview)
Actually hang on, I'm editing this to be slightly meaner. Your whole take that doing this is a sign that she's either an idiot or on a power trip is a very familiar thing that people say about women in tech and I'm honestly tired of it, because I can see myself doing exactly what she did and I don't like it when people say those things about me. Please don't do that.
You just can't tell someone to type code into google docs and expect it to just work and worst off all judge a persons skill on this basis. It takes minimal experience of programming to learn this. Hence all the jokes that people are surprised/suspicious when their code runs after first compile.
If you disagree with this you could have provided any sort of counterargument. Instead you took this weird "women in tech" angle. Wrong is wrong, interview here was wrong, gender did not play a role.
Or they can run it, asking the real arbiter of truth whether it works or not.
Of course, "whether it works" is merely one (very important) metric of quality.
Can you work with this person? Can you collaborate to write code, or will it be a daily struggle?
Whether the code actually builds and runs after the hour is up does not help answer these questions; it is arguably the least interesting part of the whole process. The time limit is artificial; if all the other things align but you didn't happen to get it working in one hour, you'll likely have got it in two. If they don't align, you'd likely never have got it.
This is like writing code in notepad and creating a PR without building or running it to test once. What is this testing? There is no real world scenario where you are expected to work like this and for a good reason.