A week of work for each job applied to rapidly becomes unsustainable. I personally have never done more than 6-8 hours of coding as part of an application, and only did that once.
unless I'm misunderstanding why you're referring to?
To be clear, this is just a general critique of up front multi-hour tests. There are ways to make these things not so lopsided. For example, make clear in the job announcement the minimum requirements so that people will filter themselves prior to putting in the effort to create some impressive application. Ideally you would have such a test later in the process so there is some investment on both sides. First pass filtering can be done with fizzbuzz-esque 5 minute exercises.
That would be fairly reasonable. The tests I got, had a heavy project offloaded upfront as effectively part 1 of the interview, with no such communicated expectation.