Help me understand the safety concern here. Between orally inflating the BC on the surface (either the diver or their buddy), ditching weight, and using the buddy's BC for buoyancy if necessary, I don't see a safety concern. A standards violation is possible, but if so, I don't really see why. However, if it is a standards violation, it should not be done...
The safety concern here is that you have a student (albeit in and Adv. class) that does not have access to their working power inflator. And the same results can be achieved by simulating the failure, especially in environments where the vis may not be the best, or perhaps you are working from a submerged platform where the bottom may be deeper.
I have been a NAUI instructor for 21 years, all in PA and most of my checkouts are done at the local training lake, also have been a NAUI Tec instructor since '99. In my tech training we have simulated emergencies, such as primary reg failure, loss of buoyancy, etc. I have flashcards to tell the diver what problem to solve.
Even during the cave training I took (just intro) with the lights out air share. While I was breathing from another diver's long hose, mine still worked and was accessible. My lights still worked and were accessible. So, if at any point in time I became uncomfortable, or another problem arose, I still had all of my tools, could turn on a light or go back to my reg and call off the skill. Regroup, learn from it and do it again.
So, during a simulation the other options are still there; orally inflating, help from buddy, ditching weights, but as an added safety measure the lpi still works and is accessible. A working lpi si also accesible to the instructor, just in case.
Jeff