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> a school would accept you, decide there were too many of your preferred major, and kick you out or choose another

That happens all the time.

So, yes.

I guess the difference is that the school was previously limiting you based on their resources, which is understandable. It would be a totally different thing if they said "You can't go nursing school because there are currently too many nurses and it might be hard for you to find a job, even though our classes are half full."

Presumably their class sizes would also be a responsive part of the system (so they wouldn't be half full).

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