So if this company ACCEPTED "volunteer" work from you, then it still seems like they should've PAID you. Unless this place is a non-profit, i don't see how it's legal for them to even allow people to do "volunteer" work for them - ESPECIALLY under false pretenses of an assured position in the near future.
It's called THEFT OF SERVICES. I'm sure you have a legal case.
by now you realize they were leading you on and the ploy of "no applications considered until..." was just a way to stop you from asking about the position. They were considering applications all along.
It's time to look elsewhere. Stay there for now until you get a new position. It'll look better to your new employer.
It is because there are about a million of you out there-willing to do a job for free-that keeps these firms from having to hire. Stop volunteering; stop undervaluing your own labor and watch how businesses actually hire people because they can't sucker anyone into doing the work for free anymore. Duh.
It's called THEFT OF SERVICES. I'm sure you have a legal case.
That's called a stupidity tax, learn from it.
It's time to look elsewhere. Stay there for now until you get a new position. It'll look better to your new employer.