Some courses at Caltech had almost identical exams for at least a decade when I went through. The professors knew cheating like the above simply would not be tolerated by undergrads.
I sat on and helped run the Board of Control, which handled academic honor code violations, for several years and professors who had been at other universities would absolutely rave about how much more they could trust Caltech students. And that was while reporting a suspected cheating case to me.
However, the explicit default was that you should not look at solutions from prior years. Professors would announce at the beginning of the course that they reuse questions and looking at prior years solutions was an honor code violation. I think it's pretty clear it's cheating when the expectations are clearly outlined.
If you had inadvertently come across the problem before and independently solved it, you were expected to disclose that as part of your answer. I personally had to do this several times, and never suffered any negative consequences for it, but the expectation for honesty was there.
Yes, it means teachers have to vary tests, but then again it gives you repository of exercises to learn from and to train on. It is just win for learning.
The students were totally on their own with this and nobody would know if they chose to cheat or not. Cheating was so trivial to do there was no cred for bragging about it. If other students found out someone was cheating, that someone would be ostracized by the students, which was much worse than anything the institute could do to them.
Of course, people are people and I'm sure some cheating went on. But I bet it was at a much lower rate than at places with proctored exams.
As for me, it was the first time in my life adults trusted me and treated me like an adult rather than a child. I much prefer that to the extended childhood offered by other universities. I was motivated by simple pride to earn the degree rather than cheat and get a tainted one.
This annoyed me not only because of the lack of trust, but because law school exam questions are almost always essay questions that take a few pages to answer. No way did I want to try handwriting that much.
Fortunately, they did allow you to at least bring a typewriter to the exam (they set aside a separate room for this so it would not disturb the people who were handwriting).
There were limits, though. The typewriter could not have more than 2 lines of storage. This was around 1992, and already by then microprocessors and LCDs had become cheap enough that even most entry level typewriters exceeded the limit. It took a fair bit of effort to find one that was acceptable.