I share the OP's concern. Another poster once described that their child's interim grades at an online school could not be calculated as the term progressed: The school's grading algorithms were not programmed to compare points earned to-date to possible point values of assignments for material covered to-date. This precluded the computation of grades until the term was complete.
This masks measurements and denies the child the opportunity to have information they may need to fully take ownership of their education... for example acquiring skill in time management and prioritizing:
Which subject(s) may require more effort and attention?
Which subject(s) have they mastered allowing them to shift study time to the subject(s) where it is most needed?
Similarly, giving children a grade of "3" (proficient) when they may be working above and beyond seems to be a discrepancy in the feedback provided, masking the truth. The recorded grades and the grading system need to be trustworthy in order to be trusted. Trust may be an underlying issue: Expressing concern about grades may be a proxy for expressing concern regarding the trustworthiness of the system.
... these are not grades for college (nor will they particularly count for anything in the long run)...
It is my understanding that student data is being amassed in
longitudinal data systems. Grading practices described in this thread seem to indicate that what is recorded may not reflect student learning, and may be arbitrary at best.
