[Nasrudith]

Well the thing is they are absurdly fine electronics. It is trivial to reroute so that the switch applies to the LED and not the camera itself (and some other trickery based upon reading its state while keeping it covertly operational). Said lie could still be detected in other ways of course but it wouldn't be a simple and complete fix.

[NikkiA]

To be fair, if I wanted to build covert surveillance I could also trivially make the switch appear to turn off the camera to commercial camera software but not actually disconnect from my covert software that I provide to TPTB.