Often I've recorded 2 or 3 people who are not professionals and are not at all comfortable with headphones. So I just sit them living room style , mike them up and let them perform acoustically the way they are used to playing together. The small amount of leakage is manageable and I'll take a good performance over technical excellence any day.
It works fine as long as they are competent enough to not make real bad mistakes that leak into other mikes.
It also works best if there is no bass involved. Bass leaks into everything.
Notice that Jam had no bass. Bass should be overdubbed.