Sure. But it adds to the workload of the teacher, which is already high.
Remember, I am distinguishing between the great teachers who walk on water and can do all things, the average teacher, and the lazy one. Teachers come in bell shaped curves just like the students do. The great teachers will differentiate superbly, the average ones will do an average job of it, and the lazy ones will fake it when the principal comes to observe.
Anything that adds workload to the teacher is problematic. Make me queen for a day, and I’d go back to 1960’s tracking. I know kids from my grade school who were in the “dumb class” and made millions, and some from my own “smart class” who drive buses.