In general though, we should be looking at how to re-design assignments to demonstrate an understanding without being a large block of text, atleast imo.
We (Or atleast, my school) started teaching us how to use a calculator in things like Trig and Calc. It's not about 'can you divide correctly to arrive at the correct value of sin' but 'can you differentiate when to use sin vs cos', which I think was the more valuable lesson. But maybe LLMs are so powerful, or so 'do it all', that we just cannot compare it to the calculator (Not in their current iteration, but looking ahead...)
The popular way to get around video chat proctoring is to physically attach notes to your screen, so when you sweep the room with the built in camera, it doesn't see anything.
Back in high school, this is how the state exams were performed. We had an external proctor come in.
This is not the mindset of very many people. They go to school because it's a requirement to get a job.
Talk to someone in college, or especially a trade school, and you'll see that the overwhelming majority are cheating, especially those from lower trust cultures. I work at a FAANG and, in casual conversation, many of my colleagues admitted to cheating with a dismissive "everyone does it".
And if you're talking about schools in other countries, well, they get paid what they deserve.
You go to school to learn. Turning in AI slop doesn't teach you anything. You didn't have to research the subject and commit time to crafting the work into something good. You just typed in a prompt (or copy and pasted it) and then turned in whatever the computer made. The point of learning isn't to turn in assignments, it's to learn and demonstrate your knowledge via assignments. If you want to get a job producing AI slop, don't bother going to school.