I was discussing this with someone involved with the project and it comes down to wanting to handle only 32 bit instructions (RVC instructions are 16 bit; other RISC-V extensions can have > 32 bit instructions, although of course if you don't support any of those extensions then you don't have to deal with it). This is a simplifying assumption in the decoder element in their pipeline.
RISC-V does allow you to define other extensions in a methodical and detectable way, and we intend to detect those at runtime (as you would, for example, with something like AES-NI or AVX on Intel). However RVC impacts every bit of compiled code so there's no way to deal with it at runtime (something like that would make all binaries much bigger and would greatly complicate the toolchain).