Yeah it has terrible optics, yet it's clearly going to be normalized and come. The question is who does it and what is the organization of it. If this company doesn't do it, the next will.
In certain roles, AI micromanagement clearly will create higher performance. Add the marketplace of capitalism and it'll all compete away.
There are certain roles, like artists, where this is the wrong solution wholly: monitoring whether an artist is at her desk will create badly performing artists, and this will show. In these roles, these tools won't apply.