It is called Placement chess, you can play it on PyChess. [1]
As far as I know no tournament ever used this rule.
As far as I know no tournament ever used this rule.
A key part seems to be alternating turns placing pieces. I wonder if this would result in top level gameplay converging on certain opening placements? If so, I wonder how not taking turns but deciding on placement privately beforehand might affect gameplay.
Anyway, maybe when the pros get sick of Chess960 they'll give this a shot :)