I somewhat disagree that this is reflective of a person's everyday work. Usually we're only ever working on at most handful of codebases at a time, and getting oriented in a completely new application (including getting it to build and run on your machine) doesn't happen every day.
I've done interviews like this and one major pitfall is the start-up time. It's possible to spend an unreasonable amount of time debugging cold-start issues with getting the repo set up, dependencies installed, and the app to build while the interview slips away. These things are representative of the first week on a new team or project, maybe. Figuring out why bundler can't seem to download the dependency in the gemfile isn't my idea of a good use of interview time.
I've done interviews like this and one major pitfall is the start-up time. It's possible to spend an unreasonable amount of time debugging cold-start issues with getting the repo set up, dependencies installed, and the app to build while the interview slips away. These things are representative of the first week on a new team or project, maybe. Figuring out why bundler can't seem to download the dependency in the gemfile isn't my idea of a good use of interview time.