this just sounds even less believable: you’re in a jursidiction where the amount of data you have to store on students is exactly specified, and you’re liable to prosecution for storing any single piece of data less or more? I would appreciate extraordinary evidence for this extraordinary claim.
anyway, even if that’s true, you could be using your knowledge to help privacy-conscious students like OP, instead of throwing a rulebook at them and casting aspersions about their motivations. I return to “reconsider your views, and the impact of your job”.
trivialising a student’s desire for privacy as being about playing videogames is a lot more ridiculous than anything the OP said.
maybe rethink your uncritical support for surveillance, and either organise with your coworkers to make your school’s policies more respectful of its students, or find a less unethical job.
with the armband as well it seems like kind of a dogwhistle