I think you're confused about the AI involvement here.

AI was used to check for cheating in a remote exam. The percentages that passed were several times more than in previous years, while 2% got tossed for "unspecified conduct issues".

Assuming those 2% were actually cheating and not the AI making a mistake is the issue.

These were multiple choice exams. There was no ability to copy/paste from an LLM. Could they have used another computer/monitor to look things up? Absolutely, but hardly relevant to the issue.