I don't limit the spell. It's situationally useful, but I've never had an issue, nor have I seen it be an issue in AL games.
So, you started a thread titled "Countering Rest Spells (Tiny Hut, Rope Trick, et al)" because there's no need to counter such spells? And you don't
need to have enemies respond intelligently - because, if you did, then
using intelligent enemies whenever the spell comes up would be countering it, and you don't do that?
I mean, yes, Da Hut is only situationally useful - it's useful in the situation where you'd like to take a long rest earlier than the DM has offered you a viable opportunity to do so. A situation that occurs, for instance, when said DM is trying to pace his campaign to the 6-8 encounter day in which your wizard is going to theoretically balance with lower-class-Tier PCs in the same party.
...of course, if you don't use pacing for that purpose, it would never be an issue...
I do play all my monsters "intelligently" aka "they want to achieve their goals and also not die." If a bunch of killing invaders tried to set up camp in my own home, I'm not letting them get away with it....
If someone casted invisibility in my game, yeah I could have it that monsters no longer have functioning senses of hearing and make it more powerful inadvertently, or I could just use the spell as it is intended to function where creatures have disadv. On attack rolls and invisible players can hide in the open.
Invisibility was one of the other spells I was thinking of, actually. Intelligent enemies, confronted with an enemy capable of becoming invisible, could adapt their guard routines to make their territory harder to infiltrate - doors kept closed, light materials scattered about to make invisible foot-steps immediately evident, noise-making 'traps', guard-dogs (or other creatures with acute senses other than sight), etc... Similarly, Gaseous Form is another 3rd-level, spell like Tiny Hut, and it could be countered by intelligent enemies hermetically sealing areas they don't want infiltrated.
Common practices?