I agree with a lot of what you've said, most of the issues are regulatory, or structural issues. Some teachers also simply don't want to teach, and prefer to be gatekeepers, but not all of them.
I was one of those who had been weeded out of an engineering degree at the Mechanics of Solids level, attempted it something like 9 times before giving up, passed the labs with A's. B average up to the required math for engineering which included Discrete Mathematics, Differential Equations, and Linear Algebra (iirc) all those were already completed for most of those attempts.
Tests were 3 questions, 5-10 steps, Answer to the 2nd was dependent on the first correct answer, Third dependent on the second. If you one, you could potentially have failed the class by week 4 which was just outside the withdrawal date for a full refund. Its pretty sad when you have a large number of people pass upper division math, who then in turn can't pass basic physics because of academic structure. I remember getting an award on one of those labs for being the only group to have their egg survive a 3 story drop with just a plastic baggy full of water (at my insistence).
Almost all professors in my local geographic area had decided to push that structure. Economics for Business had issues with deterministic tests. Professionally I deal with a lot of automation so ensuring determinism in systems we use gets back-checked quite often.
Its a sad state of affairs, and most of those issues are solveable with proper incentives and design, but getting to that point would require firing a lot of vested interests. I don't know what it is about a central structure that tends to gravitate towards the lowest common denominator in terms of work.
High performing people often get socially punished for making the people slacking off look bad. Such a backwards system.