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It's not that uncommon, but that does seem like a generous version of it.
For example, USC lets you retake 1-2 classes to recover your gpa, but with some pretty heavy restrictions: D+ or below only (C- doesn't count), first-time freshmen only, no retake when the grade was because of academic integrity violation, only available for like 2 classes, and both grades are on the transcript (but only the newer grade counts in the GPA)
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