Am I Being Played?

Recently applied for a UX Position at a startup, we had a virtual interview which went well, I was told I would have a design challenge to complete as a next step, below I have attached a screenshot of the challenge, just wanted to ask your guys' opinions as to if this is just extorting free labor/designs from me as I have never had such an in-depth design challenge to complete in an interview process.

https://preview.redd.it/ixegwytke8ob1.png?width=692&format=png&auto=webp&s=16c4e4adbe1323428fbb907053a034096e3c67b8