While I disagree with the OP on the use of proctoring software saying something like "just design an online version of the course" displays a massive ignorance of academic workloads. Designing a new course, especially one which works online, is a huge amount of work, who is going to do all that? Most academics even in normal semesters work >50h (more likely >60h) per week.

Just adjusting your lecturing to online can easily take an additional 2h preparation per lecture, and often takes significantly more, because you have to also adjust all communications and how to make material available. That's even without redesigning the course for online learning. I know a lot of colleagues who got very overworked, because of the increased demand on teachers during the pandemic.

The expense isn't justified for 10 students, since this may well be the only year that course is offered online. They are not getting a bad deal out of it. The fully new online courses are first year, and the expectation is that students will come to study in person for the remaining years of their degree. The other course I'm talking about is second year, but those 10 students can't get into the country at present - a temporary obstacle.