A lot of rabbits eat, sleep, poop, and pee in their litter boxes to my knowledge. Instagram is filled with rabbits lounging and flopping in their litter boxes.

Personally, Wick is very particular about being clean, so he’s never spent more time in his litter boxes than eating and using the restroom. He sleeps on my dresser, random spots of my living room carpet, or on the edge of my sofa.

Buttercup used to roll around in her litter box when she was younger. I think it’s fairly normal

I think rabbits like the feel of the spread out hay – its more natural.

You could try giving just a box of hay to sleep in, but I imagine it would turn into another litter tray and get peed in… It always has when I’ve tried.

Yeah mine hates to stand in the litter boxes let alone sleep / sit / lounge in it. After almost every use, he jumpes out and flickes his feet at it

He spends that little time in there, it doesn’t even contain hay! When I first got him I had hay in the littebox as well as on the opp side of the condo and he never ate the hay from the litter box. So now it’s just litter. He doesn’t dig or anything in it either.

He does sleep in his digging box, which is just paper. Never mind the plushy bed or the fleece… He choses the course paper or the only bit of bare plastic in the condo.

Let’s see, litterboxes, under the entertainment center, on the air vent (Summer) on the shelf of the big bay window, in the bird cage (Don’t ask), under the bird cage, on the sofa, and in my recliner.

Pretty much anywhere they darn please.  Trust me, your bun doesn’t mind a little poo under his butt when he sleeps.

My buns love to snooze in the box, but I think it’s because the wire allows air circulation underneath and feels cooler than a solid surface. I wonder if a small dog cot like a cooleroo would be a hit with buns?

Answering this a bit late, but Panda and Fernando, during the daytime, generally prefer to snooze on the upper deck of their bunny condo to catch some sunlight (though Panda spends a lot of time in her beloved hidey box). During their nighttime “play time” in the X-pen, they usually nap somewhere out in the enclosure, which is why I’m looking for things like timothy mats and fleece blankets to make it comfier for them.

Peach used to sleep in his box too, still does sometimes depending on the enclosure.
He has 3 habitats—well I guess two now since we finally retired his outdoor one for the moment.
At home he has a nearly 4ft wide x 2ft deep x 4ft high condo that is covered with fleece (a few double fleeced) levels and spaces. His litter/hay box takes up a good third of the main floor. (It’s luxurios and he knows it.) since moving into the palace I haven’t seen him sleeping in his litter box, in fact he prefers the back corner of the bottom floor (which has an extra blanket) or in his woven hide-a-away on the second floor. There he likes to pull the fleece in around him almost like a nest. I’ll find him there on particularly cold mornings. His afternoon snoozes are usually on his lowest raised level, jus loafed. Or stretched out on the main floor.
His 2nd residence (aka his traveling house) is a store bought rodent cage we had from when I had rats in middle school that I redesigned for him. (It’s jus easy for traveling and short trips. I let him have floor time almost daily when he is in this one.) It’s about 3ft wide x 2ft deep and maybe about 2ft high (there’s a lot of empty vertical space since we lost the levels that were supposed to go with it.) His litter box takes up half the floor space and he the remaining floor space double fleeced. He does sleep in his litter box in this one occasionally, but he recently discovered he can go under one of the fleeces and stick his nose out from under. He seems to like that.
It really depends on the bunny and their habitat. But no, being in the litterbox for sleeping, digging, peeing/pooping, eating is not unusual.
Also if you’re looking for fleece, I have found that the scrap section of any fabric store is usually the best place. I’ve got some of my favorite big pieces there for less than $5. My newest 3 were under $3 all together and were really prefect sizes. I was worried looking into fleece that he’d destroy it, but I haven’t had any issue surprisingly.