Parents have learned that every single school district will settle. It's a total shit show and schools are just trying to keep themselves from getting sued. In fact, I have several colleagues that have seen parents having sex behind their kid, moms not wearing enough clothing and showing off their boobs and an assortment of other shenanigans. The school becomes liable for any harm done by a students information being shared. The reasons school districts are trying to keep kids separate and parents off online services is because personal items are being shared constantly.
Nothing about a student can be shared, especially when it pertains to their IEP (Individualized Education Program), 504 Plan (physical impairment to learning) and physical/mental health. The courts have created a system of liability connected to student privacy. FERPA and ADA require significant red tape to ensure EVERY student is receiving the best education they can get. This is based off of the original concept of Loco de Parentis (we are acting as their parents).
In a normal setting, when the bells rings I become more liable for my students than their parents. Schools and teachers are fully liable for the physical, mental and emotional state of the child while they are on our roster. Online teaching is a nightmare due to liability.