There are several approaches to exams and grading. Testing what the students have learned is a common one. In that approach, the highest grade is the expected one. You earn it if you have learned everything you are supposed to, or at least 90-95% of it. Lower grades are signs of failure.
In another approach, the exam is supposed to challenge the students. When I was undergrad, you only needed 80-85% of available points for the highest grade. Even the best students were expected to fail some assignments, because they would then learn from their mistakes. It was nice when it worked, but sometimes the problems just too difficult for no reason or required an insight nobody would ever find, expect by accident.
One grading approach is open-ended from the top and more common with theses than classes. If your work is everything one would expect, you get the second-highest or third-highest grade. Highest grades are only available for those who demonstrate understanding well beyond the scope of the class or the degree.