I don't know why more school districts don't force this for essays. It's so straightforward with Google doc editing history too. And yeah, sure, you can get around it if you _really_ want quite trivially, but I imagine it would solve for 99% of students, and force them to actually engage with whatever AI-generated stuff they inevitably type by hand more than they were before.
Money is more focused on rolling out AI as fast as possible, rather than dealing with the side effects of that.
I have no problems typing an essay out.