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Are you at least allowed to wear anything you want or do they also enforce a strict dress code? 8 hours a day on camera is a long time. I'm sure there are other ways to boost morale aside from that.
I'd fight it, it's an invasion of privacy into your home for a start. Secondly, it's just weird paranoid micromanaging. Just ask for a reasonable accommodation, that being spied on causes you anxiety, decreases your focus, or whatever way this negatively impacts your mental health.
In all honesty, middle management is really freaked out by WFH. Having to monitor camera feeds all day is a reason to justify their existence to his or her boss. There is an entire level of management personnel that is made redundant by WFH, and rules like this are their dying cry before they are canned.
My previous employer tried to implement this. The entire Engineering and Support teams said "Yeah, sure" and then completely ignored the demand—just never signed into the meeting. They bugged us about it every few days for a couple of months and then finally gave up because what were they going to do, fire everyone who actually made the product work Ignore the demand or leave, but whatever you do, don't give in. This is an unreasonable demand.