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> I don't believe a public institution would be able to come up with a system like this that works reasonably

I don't believe “e-proctoring” companies are capable of it, either. I got disqualified from an exam for five `onblur` events (while my screen was being recorded), and it kept counting while the “DO NOT CHEAT” lockout message was displayed; if that's “works reasonably” then I don't know what isn't.

In 2009 I developed a system like this as part of my course at the equivalent of a community college. The premise of the class was to develop a real world application employing the skills we had learned so far (project management, programming, etc). The whole class (10 people) participated in building this software.

We spent 6 months on it and as far as I heard was still in use as late as 2015.

You don't have to create a whole system; just a database that prepares variants of questions, and a method to put it into the existing exam software.

Your belief is contradicted by reality. For example: https://stack-assessment.org/