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Could those long coding projects be a strategy to force you into sinking so much effort into the process that you're now in a weak negotiating position due to the sunk cost?

Yes, absolutely they can! And almost nobody talks about this. Most of the conversation about take-home projects surrounds cost/benefit ratio, but almost never as a negotiating tactic and sunk costs.

The worst kind are the coding challenges were they don't even respond back to you after delivering it. Happens a lot in London.

I felt like it was more of a way to see if you are willing to take on a large workload no questions asked when you are hired.

I've never thought of that! only rver heard my bosses/colleagues say they felt it gave them a better signal. But it wouldnt surprise me if some people had darker motives like this