Without the secrecy aspect, I don't think you can say it's spying by the definition people typically use. If you went to an examination hall and took a real proctored exam [1], would you consider that the proctor was "spying" on you?
> Moreover, it is invasive and unsettling.
This, I can't argue with. It's hard to pin a definition on what makes things creepy or unsettling. Some people find clowns creepy. Why? I have no idea. But there's no sense in arguing about it.
Personally, I think it's a clever use of technology to streamline and scale a traditional process (exam proctoring) that avoids making you travel to an exam hall or interview.