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Depends on what kind of design work you're hiring them for and at what level. It can vary quite a bit

As close as their real job - that's going to be. Don't keep it lengthy and focus on the Why in the post assignment interview.

I ask them to share feedback on current site /ad images and share a better version as an assignment? In the interaction post assignment, we discuss the assignment.

Give a copy, ask them to make a LinkedIn carousel graphic for it. Give a design statement for a website fold usually something around how to display few features of a product in one fold? I usually tend to focus more on the design thinking behind the layout and elements - if the designer keeps on saying that they put an element just because it looks good ask them to give a better answer :)