This really isn't complicated. Students should be able to search for something and get back the "ten blue links" which they are forced to actually click through and read, without an AI overview or any other kind of conversational chatbot.
Approximately no one cares if Google is using an LLM internally to select those ten links. Maybe it creates some complications for lawyers around the definition of "no AI", but if the parties are aligned in spirit this should be easy to work out.
Schools should just be able to disable the AI overview.