This has always seemed overblown to me. If students want to cheat on their coursework, who cares? As long as exams are given in a controlled environment, it's going to be painfully obvious who actually studied the material and who had ChatGPT do it for them. Re-taking a course is not going to be fun or cheap.
Maybe I'm oversimplifying this, but it feels like proctored testing solves the entire problem.