That sounds reasonable, I could see someone (younger me) going through phase II to get a better sense of the company before investing actual brain cycles on a t

That sounds reasonable, I could see someone (younger me) going through phase II to get a better sense of the company before investing actual brain cycles on a takehome test. Given the power imbalance between hirers and hirees, it doesn't feel remotely unethical to me - hirers are paid to do that, hirees are not. Only way an individual has at times is to lie. I have gotten the question, "if we give you this offer, will you accept it?" and the rational option is to say yes, then make up my mind. Nothing is binding until it is signed, and even then it can easily be rescinded by either side.