But that is exactly the strategy of the company. They want to select applicants that are young and have enough spare time to solve these puzzles. The fact that the puzzle is paid also makes sure that the small amount of cash is enticing for the applicants (i.e., young developers).
I don't believe that to be their strategy at all. It's a small company with a few devs who don't want to waste their time on junior/mid-level candidates. It's a prescreening process on both sides (me and the employer). I'm early thirties with a wife and two kids so it's not like I have dozens of hours to dedicate to that task.