I agree: the hard mental work is in
recognizing that a fuzzy, client-provided problem description is merely a disguised form of a well understood problem -- ie, getting it to the point where you can google easy solutions at all.
But then in that case, the problem as given is still bad, because it gives that part away! If you want to test this ability, you shouldn't frame the problem in terms of linked lists. As another poster here suggested, you should ask something like "The customer gave a list of everyone and who they report to. How would you sanity check the hierarchy?"
That then requires the candidate to identify cycles as something they'd want to look for, and then this problem as a special case of "find a cycle in a linked list".