It was a very poor interview experience. There is lack of maturity and professionalism right from the founders. They don't have a clue on what they are doing, what to look for, what to ask.
They don't have a single professional on the team and can't even articulate what they are doing in simple easy to understand way. This seems like one of the other wannabe startups in the bubble.
The interview process is a waste of time cause they are not really serious. They are looking for ideas, code samples, algorithms, etc. to eventually use without your permission.
If they ask for a long project - just walk away. This seems to be a common trick used by many startups. This one has integrity, ethics and transparency issues.