Depends. If they warn you long before turning on the camera, you decide the exact moment when the camera is turned on, and how it is positioned, and you only have to turn it on once while taking a test, would it be so bad ? Just put your laptop facing a wall, and the personal information you give is your face (which your prospective employer would see at some point anyway) and the color of your walls (big deal !).
It is an invasion of privacy. Is it an unacceptable invasion of privacy for the duration of an interview/test ?