Depending on which definition of "spying" you want to apply, it is spying. Moreover, it is invasive and unsettling.
Perhaps most critically, it is a more subtle test for the prospective employee-- are you the kind of person who would comply with a ridiculous request that violates your privacy in the hopes that it will land you a job?
I dunno. If I were an employer and an applicant actually installed this without question, it would make me seriously reluctant to hire them-- this is the sort of unquestioning, docile employee who could be more vulnerable to social engineering,who would not be likely to consider consequences of their actions, who does not take security, privacy, and safety as a priority for even themselves (and is therefore less likely to do so for customers and clients).
These may not be qualities that some companies value, but from my perspective, I think the "nope" letter to Amazon shows strength in independent thinking, creativity, and moral character.
It's like those companies that required you to hand over your social media passwords so HR could dig through your history.
https://finance.yahoo.com/news/job-seekers-getting-asked-fac...
That is horrifying. If Amazon doesn't hire you because of this, it says quite a bit about their company, fuck 'em. Their loss. There are companies out there that actually respect their employees.
Congratulations. You passed the test.