I think you are misunderstanding it, because I didn't elaborate on it. That's on me.
School systems are encouraging teachers to use AI in the classroom to create work for students, and many give students assignments which either utilize AI directly, or give assignments as homework which can be completed/subverted using AI. My wife is a history teacher. When it comes to retention of dates, historical facts, concepts, and critical thinking, and tying concepts together, it would be easy to plug in X assignment and its general parameters to ChatGPT, etc and prompt it for an answer to jot down in a homework assignment, versus learning the material and producing answers on an assignment in the classroom environment which doesn't utilize a computer or tablet in any way, demonstrating a grasp of the subject material at hand.
There are no textbooks anymore, so that's irrelevant. And if there are, most school systems don't pay for them. Ours certainly don't. So the work my wife asks her students to do is created, and must be turned in, in such a way that AI is not the most readily accessible way to do it. That means more hands-on projects utilizing visual creation and not just written essays and things of that nature, regurgitating dates, etc. But those sorts of written things make up a portion of her activity offerings depending on the subject matter at hand.
'Practical skills' in terms of 6th grade civics/social studies/history means showing a grasp of facts, context, and tying all of those together - an awareness of interconnected global concepts, geography, cultures, etc., linking historical events and concepts across multiple chronological points, etc. It's really easy to plug a lot of stuff into ChatGPT and ask it to analyze and tie those things together. Creating a poster, word/concept puzzles, etc aren't conducive to using AI to complete those assignments.
Depending on the subject matter and class in question, I would absolutely agree that the 'hands on' method of testing competency is better. When it comes to 'trades' and hands-on disciplines (especially chemistry, mechanical stuff, even music theory, etc), I'm an 'applied' learner too. I always tested horribly in math, but tested great in language arts, writing, etc. Usually, if a student has used AI to 'cheat', it becomes clear when they have to discuss their thoughts/conclusions at which they arrived. When they don't really understand what ChatGPT produced for them, and when they don't have a grasp of the concepts addressed in the assignment or the point of it, it becomes clear.