I think that type of thing can make for a really fun and flexible GPT-powered game system. It seems like a great way to add some engagement.
It's also brilliant the way you have managed to mitigate the ChatGPT cheating to such a degree. Although as I got further down into the details of the assignment, I started to feel glad that I wasn't in school anymore. It sounds like they will have to do a fair amount of actual work. So congratulations on that.
Something I wrote about Gemstone years ago:
http://theappendix.net/issues/2014/10/dont-cry-for-me-elanth...