Well, all I can say is that at least she didn't spend an hour sugar coating things.
I've accepted a couple of jobs because the interviewer talked the business up, how great they are, how great they are to their employees, how family friendly they are, how happy everyone is with their jobs.
I discovered within an hour of being on my first day that it was all lies.
I'd much rather be told ahead of time that there were challenges or problems and that I wouldn't be stepping into a well run organization. I at least could see it as a challenge if they needed my help getting things in order or decide not to take it on in the first place.
I work in HR, I've been an office manager responsible for hiring and firing, etc. I'm familiar with the practice of having second or even third interviews, based on passing background checks. Where I work now, we may have as many as 20 "application" appointments each and every week. People see those as "interviews", but there is a weeding out process. We definitely tend to focus more, at first, on the nitty-gritty expectations and downsides of the positions because it's not for everybody. We're talking toileting, changing adult diapers, dealing with dementia patients who aren't always nice, dealing with coordination with Hospice for people who are on end of life care and vomit and need to be cleaned up. In my field, it takes a special person and not all people are cut out for it. That's why we don't sugar coat.
We get a lot of people who are on unemployment and they have to apply for X amount of jobs. They're fulfilling their job search requirements, and really want a job, but the truth is that many aren't qualified.
I'm not sure what position you applied for, but I think that if you really wanted the job, she might have been looking for someone to interject and say how you could meet the challenges and take some of her work load off of her. She pretty much came out and said she's overwhelmed and that's why she's looking for someone.
If you have a bad feeling, don't take the job.
At least she wasn't like a used car salesman trying to sell you a lemon.
You have a choice in the matter if they call you for another interview.
Just my opinion.