In the Latin Catholic church (I can’t speak for the Eastern), the priest does not lay hands on the penitent or have any other physical contact with the penitent. The more so in view of all the abuse scandals. Definitely a “no touching” situation even without coronavirus.
The traditional way of confessing was for the penitent to be behind a screen, so the priest could hear and not see them. In many confessionals, the screen was actually a wall so the penitent was essentially in a separate room and the priest couldn’t get to them.
Face-to-face confession as currently done is optional at the request of the penitent, and only started in the 1970s.
As for “distractions”, I’m not seeing any distractions. The priest has made it clear that he is doing this because the churches are essentially on lockdown in his area. However, as EmeraldLady said, Catholics often confess in much more hectic atmospheres than these. At Lourdes and other shrines there will be long lines in the open air to get to a priest for confession, and all kinds of other stuff going on around the confession line (people praying, singing, some kind of church service happening, people conversing with their companions etc). I’ve been to shrines where hundreds of people were milling around while a line of people were waiting to confess in the open air to priests sitting sideways in chairs not looking at them.
Even the annual Easter and Christmas confession services at parish churches, with 15 priests sitting in different pews and chairs all over an open church hearing the confessions of 100 to several hundred people over 2 hours. are always way more hectic than this peaceful scene.