You keep bringing this false dichotomy up, that because some companies have given up white board algo questions they can then as you to do whatever they want outside of the interview. Yeah, if something was only going to take an hour I wouldn't complain. But I have been extended multiple 8+ hour take home work from companies. That's not okay. That being said, I don't know what an hour take home problem could be past an open book white board problem anyways. You're not learning anything new about the candidate letting them take it home than you are doing it in room.
"What an amazing time to be alive"
In this specific case, that is not what is happening. Rather than assessing candidates on some arbitrary algorithms question (which people are constantly complaining about), they are giving them a real problem the team is currently tackling. It's your time to shine and show how well you work as an engineer on real problems. I'm baffled that companies have finally heard the non-stop complaints about algorithms questions and are treated to new complaints about not being compensated for time spent interviewing. What an amazing time to be alive