andor really does deliver how a panopticon works.
Simplified: A panopticon can be understood as a system where the oppressed discipline themselves due to the possibility of being observed and punished for wrong behaviour. it's the not stealing something in a shop due to the possibility of being recorded on camera. the not saying something critical about work because your boss might listen to. the high tower or observatory platform with the guards on top in factories, cities, prisons... Just the possibility of being observed makes the oppressed comply and discipline themselves, leading to very little personel needed to enforce this system because it's all a mind game.
the prisoners in andor censor themselves and comply *thinking* they might be listened to or watched. there are only a maximum of 12 guards to enforce the system per floor. and the prison block is build like a tower, resembling utilitarian prison buildings.
Mon Mothma knows she is under observation but does not know the exact extend of it. Therefore she keeps up a facade to protect herself and is distrustful of most people around her.
Even the architecture on Coruscant mirrors the ideas of panopticon and a disciplinary society with Syril Karn working in a large hall with observatory walkways in-between.
