It is an organization. People make decisions based on dynamic inputs all the time. A person can take the responsibility to instruct a technical person to remove his name and redraw the bracket. That same person can turn heel and go pick up their significant other for breakfast. The latter decision is gonna make some noise. Let the lawyers sort it out between now and Tokyo. The latter decision allows the purpose of the tournament to be satisfied.
I will wager most, if not all, of the supporters of this blind rules mentality will frown on it in contexts more significant than this one. How about handcuffed nine year-olds? It is department policy. Zero tolerance school rules? Expulsion for a rubber knife!