(I don't know, I just have some vague memory of some Tomtom/Microsoft conflict due to FAT)
edit: user 'xxs' managed to type up the same issue before me (while I was typing mine).
Additionally the specific EFI FAT32 implementation grants various patent rights which means you can implement EFI FAT32 (atleast, last time I checked by the situation)
The other restrictions of the FS barely matter since 99.9% of the time it's used as /boot it will be read from and has barely any activity. The data integrity can be insured by setting up secureboot (MS or User/Setup mode)
[0]: https://en.wikipedia.org/wiki/File_Allocation_Table#Patents
In the pure form of the file system, yes, but with VFAT (which also adds long file names, creation time stamps, and access time stamps), the precision is exactly 1 second increments.