The school that I work at started doing this a while ago, it came mandated by the district.
The excuse is that if a kid starts out with less than a 50% even if they begin working hard to pull their grade up they still will not be able to.
I personally have mixed feelings on it, I can understand some people thinking it gives kids an easy way out; however, I also understand not wanting to fail a quarter of your class or more because they aren’t getting assignments and other materials in which is a very real reality.
It’s all fun and games until Junior can’t graduate and walk with his class because he doesn’t have enough Carnegie units because he went a whole month or longer without turning in an assignment.
Then when you try to reach out to his parents they’ve changed their phone number, but when they find out Junior is not going to be able to walk with his class they somehow find a way to contact the school then.
2-3 kids like that you can withstand but you can’t have a quarter of a class of 400-500 students failing for those reasons, so some places put a safeguard in place.