This was the process during my application:
1 interview with recruiter
1 interview with established Tech Writer
Writing Test (uncompensated)
1 interview with a higher-up (whose position can't even be hinted at without getting the review removed)
Most of the people I spoke with were personable. The higher-up was very cold and unfriendly and seemed rushed when we talked, and I'm honestly not sure what this interview was even for. Would also say in general the company seemed to forget that this was a temporary position...3 interviews and writing test is a lot for a contract.
Yes, there was a chance of moving to permanent status but not guaranteed. And no, you will not receive compensation for the writing test. However, I did appreciate that they provided feedback on the writing test at least, though no feedback on the decision.