I recently interviewed for my team and tried this same approach. I thought it made sense because I want to see how people can actually work and problem solve given all the tools at their disposal, just like on the job.

It proved to be awkward and clumsy very quickly. Some candidates resisted it since they clearly thought it would make them judged harsher. Some candidates were on the other extreme and basically tried asking ChatGPT the problem straight up, even though I clarified up front "You can even use ChatGPT as long as you're not just directly asking for the solution to the whole problem and just copy/pasting, obviously."

After just the initial batch of candidates it became clear it was muddying things too much, so I simply forbade using it for the rest of the candidates, and those interviews went much smoother.