I am absolutely not surprised about this BS tracking software stuff. I was interviewing with Upwork a couple of month back. I live in "western Europe" and what they offered me was actually less pay than being employed full time here. For the moment I accepted but more out of interest to see what the rest of their interview looks like.
The questions they had were quite specific about corner cases of the language used. I liked that a lot. However, it's also just stuff that you can read in a couple of blog posts about python corner cases.
What struck me the most was that they seriously asked me to write up a program to prove my coding skills - despite having send samples - at which point I dropped out.
Several things just turned me completely off about Upwork:
1) They claim that they have the "1%" of the best developers in the world. BS. With the kind of money they offer: forget about that. Maybe you have a couple of imposters who don't know that they can charge easily double of what they offer but the majority will be mid level for sure. So this claim is a lie.
2) They obviously cannot guarantee that you will be assigned a project anytime soon once you complete the interviews. But asked as well for a lot of engagement from your end to go through the process.
3) It was something like $6.000 per month - market rate for a contractor in Germany with comparable skills and experience is more in the range of $12.000
However, and that's my take from it: if I ever have to hire mid level developers for remote positions I definitely will look at Upwork's portfolio and pirate them away. Put the 20% that UW charges on top of their salary and the deal should be golden.