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Hi,
Is anyone facing same situation?

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I do the same thing whenever possible with my team. Just be accessible if needed
Sounds like your boss is just being nice and trying not to waste your time. Say thanks, keep your notifications on, and enjoy!
Thank them. Tell them you’ll be contactable all day if needed. And ask if there are any department projects or things you could be thinking about. Or if you have an idea already talk to them and suggest you spend time thinking and progressing it while home.
Not a trap if you still get paid.
Def be on email and available. Sounds like a work from home situation.
Be available no matter what
That’s odd. Are you freelance?