I was a teacher last year and while I can't answer this question fully, I do know that it's a result of perverse incentives and group pressure.

Where I taught at school (a private English school in China) we also had an app that shows parents how their student is doing. They'd see test scores as soon as I uploaded the grades, and I'd get complaints from some of the parents if I was more than a day late in uploading those scores.

In the case of my school, we were competing with other private English schools. If we stopped or had never started using this app, we would get a few parents complaining "why can't I see my son's grade? [school z] does it, so I'm going to switch to their school!" We would lose some parents -- and for our student-retention team, losing too many parents means a pay for cut the following year. They would do anything to keep those parents so promises get made, and ultimately the school would certainly go back to using the app.

Meanwhile the group who built the app gets fabulously wealthy because they've built a (albeit harmful) service that their clients can't possibly get rid of.

Depressingly, the only way I see it turning back would be a force of equally-upset parents who removed their students from the school while asking "why do you use this at all? It's fostering anxiety and depression for my kid".

People vote with their wallets.

Not a parent, but as someone in that generation - I almost feel like it’s the natural evolution of how stuff was done when we were in school, just made worse with always-on technology.

20 years ago, when I was a high school freshmen, I wasn’t supposed to have my cell phone in class (or even turned on during the school day. I consistently broke that rule.) and grades were still generally handed out in person. But by the time I graduated, we had pilot online classes, were often emailed grades, and there was a database for the county that could be accessed to see GPA. None of this was in real time, which was better, but the building blocks were already there.

But to me, this isn’t really about technology. It’s about culture and society that, in my opinion, is extremely unhealthy. As another commenter says, much of this can be seen as “school X does this so we have to follow” and parents are often very competitive about their children’s performance, whether it is in school or sports or drama club or whatever. Those of us raised in the era of “everyone gets a trophy” (but the unspoken part of that is that you still know what the “real” trophies are) and lessons for everything (I was in gymnastics and drama most of my life and took golf, tennis, cheerleading, piano, and voice lessons at various times in my childhood/early teens - and that was modest compared to some of my peers), were often preconditioned or encouraged to achieve certain things — whether they were ultimately important or not. I’m not surprised that kids raised that way would also raise their own kids with similar expectations, now with the additional horror or real-time access not just to grades, but location and other stuff.