A blue book exam is a type of test administered at many post-secondary schools in the United States. Blue book exams typically include one or more essays or short-answer questions. Sometimes the instructor will provide students with a list of possible essay topics prior to the test itself and will then choose one or let the student choose from two or more topics that appear on the test.
EDIT, as an extra to solve the mystery:
Butler University in Indianapolis was the first to introduce exam blue books, which first appeared in the late 1920s.[1] They were given a blue color because Butler's school colors are blue and white; therefore they were named "blue books".
There is test-taking software that locks out all other functions during the essay-writing period. Obviously, damn near anything is hackable, but it's non-trivial, unlike asking ChatGPT to write your essay for you in the style of a B+ high student. There is some concern about students who learn differently or compose less efficiently, but as father to such a student, I'm still getting to the point where I'm not sure what's left to do other than sandbox "exploitable" graded work in a controlled environment.
Speaking from a life of dyspraxia - no, not everyone with sucky handwriting is lazy, many of us would spend 95% of our capacity on making the writing legible and be challenged to learn the actual topic as a result.
In the 1980s that wasn't really a thing. Besides, it taught me a valuable skill: I partnered with someone who was good at taking notes and I was good at paying attention without taking any notes - she, too, had a problem understanding what she was writing down while writing it down, but took beautiful copies of the lecture. So, afterwards we'd get together and I'd explain her notes to her - which helped me to cement the concepts in my head, at least long enough to get through the exam, and she got her notes explained.
I have a friend who has taught Online university writing for the past 10 years. Her students are now just about 100% using AI - her goal isn't to get them to stop, it's to get them to recognize what garbage writing is and how to fix it so it isn't garbage anymore.
This is the inevitable result of "No Child Left Behind" linking school funding to how students performed on standardized tests. American schools haven't been about education for the last 20+ years. They are about getting as much funding as possible.