I think due to its generalized nature there are exceptions where it doesn't even apply (like people who are weight training, pregnant women etc).
I also think it is becoming apparent that weight alone is not as useful of a metric as was once believed. It doesn't do a great job of identifying whether or not someone is healthy.
So maybe it is the best that institutions can do to gauge the health of a population with the data given, but I think it could be improved drastically with extra metrics (I've heard of measurements around the body being used).
There is a subset of people who are being misidentified as unhealthy or overweight. Idk how large it is but it seems significant.