This has been ramping up for years. The first time that I was asked to do "homework" for an interview was probably in 2014 or so. Since then, it's gone from "make a quick prototype" to assignments that clearly take several full work days. The last time I job hunted, I'd politely accept the assignment and ask them if $120/hr is an acceptable rate, and if so, I can send over the contract and we can get started ASAP! If not, I refer them to my thousands upon thousands of lines of open source code.
My experience with these interactions is not that they're looking for the most qualified applicants, but that they're filtering for compliant workers who will unquestioningly accept the conditions offered in exchange for the generally lucrative salaries. It's the kind of employees that they need to keep their internal corporate identity of being the good guys as tech goes from being universally beloved to generally reviled by society in general.