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Companies usually pay you for your time and have an expectation that your butt is in a seat for a certain number of hours. Completing your work early generally does not mean that you can fuck off for the rest of the day or week.
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That's a problem with how companies see employment, rather than a description of how it should work. This leads to employees basically pretending to work, like in school how a teacher would assign us useless task sheets and call it "busy work".
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No. Your employment is most likely at-will, and if you are a salaried employee it's because you're evaluated on your output and not the time you spend in your seat.

This is a constructive dismissal. If she was hourly, sure, being on camera makes sense. But if you are salaried and some clown in HR decides that they want to make sure you're working 40 hours but WON'T pay you any overtime or judge you on your output, they're trying to have their cake and eat it too.

The outrage is justified. If it mattered for her job then no AI monitoring would be needed.

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