That is an insanely bad look for that employer. This kind of invasive employee monitoring is treating people like property rather than as human beings. The problem is that the power dynamic between employers and employees in many countries is such that they can make the most outrageous demands and people will have to comply because there is always another person ready to step into their shoes.

I wonder how many employer-provided laptops are secretly recording video or audio for WFH staff. You can tape over a webcam, but what do you do about a microphone you don't trust?