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Never heard of an agency give you take home materials, seems like they want free work.
Any test or assignment in my experience is a red flag unless of course they're paying you to do it?
Let them know you're happy to do it but it'd take so many hours and give them your hourly rate.
Editors often take editorial tests to prove they’re at least base-level competent. Is the work for a current brand or something from years ago?
What kind of take-home test?
Rising Star
I absolutely would. The free work scam is rampant these days
Often jobs aren’t posted but the test after just one screening is a flag. Can you ask to meet more of the team before doing the test? Ie more real humans.