I agree - I would have been toast. I wonder if the teachers/colleges need to change the way they teach and assess. Let the students use the AI tools they like (perhaps guide them how they can use them professionally), but test regularly and early on the skills/knowledge they're meant to be gaining offline and in person. Oh and don't give Fs for cheating - suspend them.
I read a few years ago about a teacher (I think highschool) who put his lectures on YouTube for students to view in their own time and then used the in class hours for interaction, questions, tests.
EDIT: Claude beat my Googling: This was 2 chemistry high school teachers in 2007 - The Flipped Classroom https://fltmag.com/the-flipped-classroom/