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We know that NY is considering "practice under the supervision of licensed attorneys'. What does this mean for students graduating this year? Will they have to take the bar exam at a later stage?

It usually applies to people who are awaiting to get admitted.

2013 wrote:It usually applies to people who are awaiting to get admitted.

Right. This is basically what permits new grads to practice law as "law clerks", pre-admission (under licensed attorneys' supervision). Currently/historically, this authorization for "supervised practice" is tied to a requirement to take/pass the bar exam within the next two administrations following graduation. Off the top of my head - I could be misremembering - spring law school grads are required to take the July exam; if they don't pass, they are required to take the February exam; if they fail the February exam, they can no longer practice law, even as "law clerks" under supervision, until/unless they pass a future bar exam and are formally admitted to the bar. The proposed modifications are probably to amend the rules around taking the July exam, which has been cancelled.

It's like what they do in Canada Re: articling.