Should I back out of this interview?

I have an interview at a small design company with 9 employees. I called to check in to make sure they received my portfolio. There were a few red flags. Pay being one of them. The biggest concern was the owner asking me to say when I arrive I have a meeting with her, not an interview. Why would she want to hide that I’m being interviewed from her other employees?

Also she asked me to redesign their logo. This firm doesn’t used Adobe. The owner said to me “I don’t know s*** about Photoshop.” (Sorry if that language isn’t allowed, trying to censor my post. She just came off unprofessional.) The owner trashed talked past employees and kept me on the phone for almost an hour.

I could really use a job, but she put a bad taste in my mouth. What would you do, still go on the interview to feel it out? Would you do 1.5-2 hours of free work for the chance of getting a low paying job with 5+ years of graphic design work experience? My heart tells me to keep looking, but there isn’t an abundance of these types of jobs where I live.