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Are we allowed to bring pencil cases into the testing room or will the pencils have to be loose in the bag?

This seems like a case of over thinking the rules. I'm not sure about this one but I'm pretty sure a pencil case is allowed, although I'm not sure why one would be necessary. You'll be ok either way.

I'd just throw them in a sandwich-sized ziplock, then put them inside the larger bag. Since they're both clear, they'll be no doubt that there are only pencils inside.

Just put them loose in the bag. Why do you need a pencil case?

Everything you take into the room (Water, snack, tissues, pencils, etc) must fit into the ziploc bag. If your pencil case fits, sure, but why is it necessary?

In Oct, the proctors made people leave bottles of water outside the room because they wouldn't fit into the bag. I didn't see one pencil case either.