Isn't this largely just a one off situation that happened to work out? I doubt there will be legions of prisoners working remotely. If that future did come to be, it would be rather dystopian imo.

More dystopian than people in prison not being able to prepare themselves for a life outside?

The moral hazard is rather high. At the limit, the entire white-collar work force is wrongfully imprisoned, working for slave wages.

. . . ok.

Perhaps it'd be an interesting SFF novel.

if, right now, it is not dystopian, then there is no reason to say it would inevitably be dystopian if there were multiple occurrences, although sure, I expect it probably would be considering what the world is like. Of course I am the last person who one would expect to say it but - there is always hope.