This just sounds like UBI with extra steps, and not very universal, as there won’t be as many “machine observing” jobs as there were jobs which the machine replaced.

You can make more and more bureaucracy. Someone must traine the machine observer, someone supervise them etc. There are no limits for the imagination.

Why not free up the newly unemployable portion of the population to pursue their passions and enjoy life, rather than mandating the existence of silly jobs for the sake of jobs?

I think it would be a problem with inflation and so on.