It's not unusual in the UK.
But wooden objects do biodegrade within human time scales if just left in a meadow. The same is true of polylactic acid objects. Neither wooden nor PLA objects break down in a home composting system like orange peels do, but both biodegrade much faster than e.g. polystyrene.
So tl;dr: paper is a worse user experience. Worth it IMHO but many people will certainly not agree.
Disposable plates and paper boxes covered in grease and food bits or soggy with liquid also shouldn’t be tossed in the recycle bin (except in places which explicitly accept them), with or without a coating.
single use plastic bags were banned, so now instead people accumulate the more dense multi-use bags under their kitchen sink instead
however UK retailers swapped to selling heavier duty plastic bags instead
That would make those plastic plates single-use, wouldn't it? It raises the question of whether single-use is only about the supposed intention of the producer or also about the actual usage of the item.