In abstract I think it's great to have people use tools their comfortable with, but I dislike dinging people because they write good code but are not good at unborking Python venvs (less of a problem now) (yes you can be a good programmer and still lose time on dumb environment stuff)
Some candidates will not have problems installing dependencies and want to use their own tools.
Other candidates will want to not have to think about their environment.
Providing an online code sandbox doesn't preclude allowing candidates to do it on their own laptop!
We take in these bug-squash/Github based repos, serve them in VScode Web/Jetbrains/etc, and give you instant results
Email is in profile if anyone's curious to see it live
Otherwise I'm easily 4-5 slower and can't think as clearly because of errant keystrokes.
I think the good middle ground is having both a canned environment and allowing candidates to use their own... Unless the job is about debugging production systems where only vi is available, in which case that interview might as well represent the actual job.