I don't think you realize how easy it is to simply "not notice" these things and no one checks. They proactively scanned their transcripts. They could have easily not scanned their transcripts, or scanned them in a way that would have had low recall (thus satisfying the letter of the law), or scanned them and ignored the findings.

It is extremely easy to not disclose. I think you're too angry to realize this.

We see this in aviation as well by the way. Punitive disclosure leads to no disclosure. This is how you get suicidal pilots that don't ever disclose their depression because it'd be career ending, and then as it gets worse, one day they do something horrible.