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I did it twice and got the job both times. Both times it was brainstorming for a made up brand. It basically depends on how bad you want the job. If it's a place you really want to work I say go for it, if not pass.
This is correct.
I did it once, but got paid an hourly freelance rate. I think no matter what if feels icky.
I may inquire about potential compensation if I get to that step!
I did it once, got hired based on it. It’s annoying but it got me the job and I got out of a place I had been wanting to leave.
Ask about the expectations on time you should spend on it. I think 1 hour or so is okay. But like a serious assignment with real deliverables that takes 4-8 hours you should share your hourly freelance rate.
Years ago I did one, took about 1 hour, it was a piece of cake and got the job.
They got back to me that it is paid! Don’t know why they didn’t mention it up front, though!