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Someone should get fired for this

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Red flag. Any place that is asking you to complete free work is a place you don't want to work anyway. If they aren't able to assess your talent from three interviews and your portfolio they don't know what they are doing. Consider yourself lucky.
Not your fault. Why put a timeline like that on an assignment?
Damn drop the name so we can all avoid it
Seems like they want to mitigate a specific problem they’re having internally, and that they likely (a) need to significantly improve their communication, or (b) need someone more senior than they’re asking for… Either way, sounds like you dodged a bullet.
They don’t want an honest depiction of your design abilities, they were assessing your speed. They know what you’re capable of through your portfolio. I’m assuming this place is “high volume and fast paced.” Unless it’s an extremely large compensation package, or you’re desperate for work, I would rescind your application and cite their unprofessional interview process.