Standardized test scores are correlated with race, but schools want to admit a more diverse set of students. If they consider test scores and still try for more diversity, it looks a lot like discrimination against groups with high scorers, like Asians. I think the SCOTUS has agreed to take a case against Harvard pertaining to this.

My own institution did not require standardized tests for a couple of years, mostly because of Covid, and it's been a bit of a mess. Test scores turn out to be good for placement in math classes.