I didn't see much cryptic except having to click on "perf_takehome.py" without being told to. But, 2 hours didn't seem like much to bring the sample code into some kind of test environment, debug it enough to works out details of its behaviour, read through the reference kernel and get some idea of what the algorithm is doing, read through the simulator to understand the VM instruction set, understand the test harness enough to see how the parallelism works, re-code the algorithm in the VM's machine language while iterating performance tweaks and running simulations, etc.

Basically it's a long enough problem that I'd be annoyed at being asked to do it at home for free, if what I wanted from that was a shot at an interview. If I had time on my hands though, it's something I could see trying for fun.