I said to him “So this is an interesting proposal... if we install this software then I can save on management costs by replacing your position with this spyware?” He never brought it up again and we later just got rid of him completely.
Micromanagement and this sort of spying rarely builds high performing teams. Managing worker productivity is one thing but blatant spying is a sign of much deeper problems with a company and its management.
I’ve generally found a fairly strong inverse correlation between how good a manager is and the amount of paranoia they have on their teams not doing what they should. Good managers build great teams and then trust them.