State law allows PE exemptions for academics.
Michigan Compiled Laws 380.1278b Sexual abuse of children; adoption and implementation of policy.
(i) The health and physical education credit requirement under section 1278a(1)(a)(iii) may be modified as part of a personal curriculum only if the modification requires the pupil to complete 1 additional credit in English language arts, mathematics, or science or 1 additional credit in a language other than English, or requires the pupil to complete a formal career and technical education program. This additional credit must be in addition to the number of those credits otherwise required under subsection (1) and section 1278a(1) or under section 1278a(2)
MODEL POLICY ON QUALITY PHYSICAL EDUCATION AND PHYSICAL ACTIVITY IN SCHOOLS
Model policy does not allow for PE exemptions.