You'll typically hear it referred to as 'curved grading'. It's not uncommon, and it's typically justified as many students would fail if the class wasn't curved.

https://en.wikipedia.org/wiki/Norm-referenced_test

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> I was just talking about if we were working kids too hard or something

We are, the internet isn't helping. If you haven't read it, [0] is a fantastic piece showing the anxieties of modern studying. I see it as similar to how gaming has changed over the past ~20 years, the 'best' strategies have been democratized, and the general bar for skill is much higher. This is fantastic if your goal for education is a better educated workforce, and destructive if you're using academic success as a differentiator.

[0] https://every.to/cybernaut/caught-in-the-study-web