You think that's bad...I work in a university and a different segment of my department is responsible for implementing and managing ExamSoft SofTest on student computers.
For those that aren't aware, it's essentially a solution to the issue of BYOD. Students want to use their own laptops to take exams (and I'm sure it's also a lot more economical for the school since each student will already own a computer whereas building large computer labs and maintaining many machines just for computerized testing would be prohibitively expensive in our current facility).
The way it works is you essentially grant the software low level root/admin access to your machine so it can sandbox exam software and prevent you from running anything else during tests. This alone would drive me batshit insane if I was a student forced to use this setup but the worst part is that the actual software always seems out of date and doesn't support current OS versions.
We had so many problems this term when students arrived in the fall with new laptops running Windows 10 and OSX 10.11. Apparently, ExamSoft hadn't had enough time to make sure their software worked properly with these new releases so students were told a) if you haven't upgraded to the most recent OS version yet, don't do so. b) if you have recently upgraded to the most recent OS version, you should downgrade. c) if you just bought your computer with the latest OS version installed, um...we'll try to work something out.
I am so glad I am not in the group that handles this stuff because it seemed like a total shit show. The nature of the software prevents it from running in a VM so you can't just run an instance of Windows 8 or OSX 10.10. A lot of the exams aren't simple computerized versions of the old scantrons or paper tests and require the use of software run from inside SofTest. And the worst part is that people generally want to keep their OS fully updated and patched for security and support purposes (not to mention the money people spend on new computers only to find that the required software only runs on old OS versions).
From my end, dealing more with online course delivery, I've thankfully been able to move us away from Flash or Silverlight players for watching recorded content but there's still infrastructure that we need to work around since we can't simply replace it all if the frameworks in place still require some plugin or another for the time being. Not so much a privacy issue as one of keeping up with advances and standards when enterprise/education software can be slow to adapt.