Personally as Director of Online Learning and an online instructor I like that students have their profile picture in Canvas. It adds a personal touch that helps when working in an online environment. I also like it for my hybrid class because I can see their picture and don't have to read their name when looking at discussion posts - silly yes, but I like it.
Yet, I understand that students may be self conscious (or have security concerns) and ultimately could post a picture of anyone and how would you know it wasn't them (in an online environment). Because of this I ask students to either upload a picture of themselves or a picture that represents them - favorite sports team, picture of their pet, etc. I do say that I prefer a picture of them, but allow for the student uploading something else if it makes them feel more comfortable - which overall is the main goal of my class - I want students to feel comfortable and like they can be a part of the course.
If you want to argue with the student about it, one good point is that Canvas is a closed system and the only people that can access it are people who are in a class with you. Not sure how strong of an argument it is, but that's about the best I've got.
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