> seemingly renders compliance managers unable to tell the difference between categorically different things

Because it renders them liable. The whole system will turn against you if you give it an opportunity to nail you for using discretion.

And this happens everywhere in society after a certain size is reached due to the need to hold people accountable without actually being able to fully evaluate who or what is to blame (due to the situation being too complex or not having all the facts/data). But politically, someone(s) has to go down.