On my site https://sergeykhrushchev.com , I explain how one can create a Grade Book in Microsoft Lists, SharePoint, and Teams. However, it is difficult for teachers to do this. I import student's data from the Team through Teams PowerShell. Then the csv file obtained is converted into a special xlsx table by an Excel Macro. Finally, a Power Automate assigns right permissions to the list, so that the teacher can see and change all grades, whereas students can read only their own grades.
This process is very similar to the existing one. If a teacher adds a student to a team, then the system creates a personal notebook for this very student automatically. Another example is a recently embedded Forms service into Excel Online (business). As result, there is no need to use Power Automates for data collection. It looks like the process I described above can be moved inside the main body to use the internal connectors.
Microsoft Lists have a lot of options. Therefore, it is only necessary to create automatically a Microsoft list in the SharePoint of the class with columns including the very basic data, such as Display Name, Email, System ID etc. Other columns with grades for home works, quizzes, exams teachers can add themselves later. It will be a great feature for Microsoft 365 Education. My grade book looks as shown below. The calculated columns for attestations and final grades are not shown. I think that this list will be useful not only for Education, but also for Business.