So, to start off, I’m someone who does not typically perform well during interviews because of anxiety (but through some miracle has had no issues with employment), so take this response with whatever bias that brings.

I believe this is bad too. You’re still essentially asking a gotcha question, expecting one phrase in your answer and failing the candidate if you don’t hear that phrase. And, in fact, I disagree with the premise. I think the question is defined quite well in the context of programming, given that someone answers with the possibility that there are many ways to hash something and many uses of hashing.