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Anyone work or has worked at MGO?
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Are they that firm on the salary? Yikes. Free projects are a red flag. Anything beyond an hour or two should be billed as consulting. They don't seem to value you. I'd walk.
Same for me, I've been in UX design for almost a decade and have had to do this a few times. When I was starting out, experienced designers warned me that some companies use this as a way to extract free labor - e.g., post a job focused on accessibilty design, get 3 or 4 candidates to work on your problem, then ghost them and keep their ideas. Not sure how textile companies do theirs.