If something is too vague or broad, ask questions. If no guidance is given, scope it yourself and explain why. Time box it, and say you are doing so, assuming no reasonable duration was given.

The interviewer / interviewing company may balk at this, but that’s a red flag you want to see.

It doesn’t sound new, but I can believe it is getting more common.

I largely agree. If the take-home is a fun puzzle, great. If it is a poorly written request for me to put myself out in order to show my enthusiasm, no thanks.