Sure, but the idea with BEM is that you generally don't have situations where the result of that algorithm is confusing or unexpected. Or at least that's been my experience, even on large codebases. I generally don't run into situations where styles overload each other in weird ways when I'm using BEM (others' experiences might vary).

You could throw the same criticism at Tailwind -- Tailwind can still expose you to cascade issues, not all Tailwind classes are single-level selectors under the hood and not all Tailwind classes only target one property. At the end of the day this is all compiling down to raw CSS, so in neither situation have you actually eliminated the cascade. But with both BEM and Tailwind you are much less likely to see those situations, and when they do arise they are less likely to introduce long-term maintenance problems and are more likely to be easy to address/encapsulate. If you run into cascade bugs with Tailwind, it's probably something you fix in like one file, instead of needing to search through five.

BEM doesn't technically interact with anything, it's just a style of writing CSS. There's literally no technology behind it, it is just a naming convention. But in practice, using a naming convention mitigates or eliminates a large number of cascade issues.