Did any brand ever make a camera like this?

My best compact option -if I don't go with a 40mm lens instead of a 35mm one- is the XA... It's not manual, but at least it has a useful fast +1.5 for white walls or light sources, and it's very light and compact.

Except the XA is pretty useless as a decisive moment camera. Because of the weird shutter button, it's more of a mush around and hope the thing fires at the right moment camera. Minox release is far better. Any of the fixed 38-40mm lensed compacts that have been suggested are better suited than the XA or Rollei, imo. Isn't sending a bunch of kids out to take photos of strangers in Colombia a good way to get them attacked, whatever camera they're using?
 
I am sure that you have considered this but it seems to me that your criteria is fairly restrictive.

It seems that you want your student to be able to take street photographs using light, inexpensive, manually operated, cameras with lenses that can be scale focused. Obviously you prefer that they have no meters but, off hand, I can't think of anyone who has manufactured a meterless camera in a very long time, except Leica. And I doubt your budget includes this type of camera.

I was scale focusing on the street many, many years before I finally began moving to rangefinder cameras, but I was using SLRs. You may have better luck finding some inexpensive SLR cameras with 35mm lenses than will finding the equivalent rangefinder style.
 
As a result of this thread I bought a Smena 8m. It's been about ten years since I last saw one, but I will say it may be the closet thing to a perfect camera for OP's needs as any camera in existence.

At f/16 depth of field is indicated to extend from 1.2 meters to infinity when set at about 2 meters. That should be deep enough for anybody. It is meterless and fully manual in operation. And in practical terms, I would suggest it's better to have something that's close, rather than nothing at all.

That being said I know there are other Smena cameras that may be a little more ergonomic and thus user friendly. Looking at it now I can see there are a few minor drawbacks to the 8m: lack of strap eyelets, manually cocked shutter, and a small unergonomic rewind knob. One would also need to make sure their cameras come with the take up spool since it is removable and easy to lose.
 
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