I wonder if this is legacy software shoehorned into a current-day emergency situation, or something that vendors recently built as Covid-19 ramped up. In practice, depending on the data workflow and expected use cases, it's not terrible to use software that records in an Excel spreadsheet, especially if the software is intended for scenarios of 1 to 100K records. But today, it seems like a lot more work to create such a rickety system than to, say, design around SQLite.
The Daily Mail had a concerning detail about the current "fix":
https://www.dailymail.co.uk/news/article-8805697/Furious-bla...
> The technical issue has now been resolved by splitting the Excel files into batches.