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Collections are a way for you to organize kata so that you can create your own training routines. Every collection you create is public and automatically sharable with other warriors. After you have added a few kata to a collection you and others can train on the kata contained within the collection.
Get started now by creating a new collection.
You are right and the random inputs you see are a result of a sloppy authoring, which was unfortunately very common long time ago. The description should define what a "word" is, or tests should use some intuitive, non-surprising interpretation. One hint can be the rank of the kata, where a 7 kyu task would usually not require you to handle any complex cases, but it's a bit of handwaving the problem away.