This has been done in my last exam phase and has worked well. They cranked the AC to 11, which made it quite an unpleasant envirommemt, but I would rather wear a jacket than take online exams
I can remember taking many exams in the athletic field house at my university back in the 1990s. It was pretty standard when you were in a large class.
The desks were so far apart that the current "social distancing" standards would be met. I remember that many courses had multiple variations of the same exam given to students to further reduce cheating.
I'm taking an online masters right now and have taken a few (pre-pandemic) proctored exams. The nearby university offers to proctor any exam for $10. They have a bunch of rooms with desks, and it's no big deal at all.
This proctoring technology thing has gone too far and too fast. It was a knee-jerk reaction, and with a lot of complaints I bet that a lot of it gets dropped.