The panopticon design was originally intended for schools too, as well as other institutions:
> Bentham conceived the basic plan as being equally applicable to hospitals, schools, sanatoriums, and asylums. He devoted most of his efforts to developing a design for a panopticon prison, so the term now usually refers to that.
> Bentham conceived the basic plan as being equally applicable to hospitals, schools, sanatoriums, and asylums. He devoted most of his efforts to developing a design for a panopticon prison, so the term now usually refers to that.
https://en.m.wikipedia.org/wiki/Panopticon
Whether it’s friendly and encourages healthy development is another question.