Live coding does suck - worst off, even if you ignore that it biases to stress tolerance, it tests "leet code" skills for things like reversing a list. Most actual development work involves things like, design work, managing a large codebase, debugging, reasoning through systems, etc.
That said, does anyone have a good alternative? If somebody has open-source work and portfolios, there's a great window into their work, but that's probably an unfair expectation.
I've had success with a short take-home task and then an interview asking them to talk through the code/potentially modify it/discuss the approach.
They get time to prepare and think about the problem. Because it's a familiar context, you can ask for more real-world alterations, discuss deployment meaningfully, etc.