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Not just for production purposes, but it's that they're treating them like children. Why not let them stay up and have a few drinks on their last few nights? And if it gets rowdy or interesting, too bad, lust let them, even if you're not going to use it. It's so bizarre.
It's probably budget related... Just like a prison, if you are short staffed - then lock them down ... It requires minimal staff to watch them sleep verses have them spread all over the house engaging in different conversations...
And they might be scared that if they let them roam till 1am -- something crucial or critical might be discussed and they miss out on capturing it due to low staff numbers not being able to monitor everyone if some are in the bedroom, some in the lounge and others in the back yard...
 
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