It is okay. All practical questions, no tricks. Write small functions and SQL statements; most of them are scenarios that will be used in real work. Keep talking about your thoughts; those count too. There are also design questions. They are looking for your design principles; consider performance and extensibility.
Reverse string.
Reverse linked list.
Design vending machine system.
The following metrics were computed from 72 interview experiences for the Microsoft Software Engineer II role in United States.
Microsoft's interview process for their Software Engineer II roles in the United States is fairly selective, failing a large portion of engineers who go through it.
Candidates reported having very good feelings for Microsoft's Software Engineer II interview process in United States.