That system sounds so incredibly broken and exploitative. I'm sure it's a complete accident that the upshot is that some number of students have to spend tens of thousands extending their studies.
It absolutely is, especially realizing that a significant percentage of the applicants to these programs are international students, who have tuition fees 5x that of local students, and who have really no choice but to pay for another year of studies in order to reapply to their intended majors, or have wasted hundreds of thousands of dollars and multiple years.
I am obviously jaded, after spending 2 years of tuition there, only to be rejected from my intended major, and told to spend the next year re-taking classes.