There is what I consider a big difference between what I teach (physiology) and what my D undergoes in MT. For me have objective data I can go by. I have test scores that tell me if a student can comprehend the information he or she needs in order to make medical school. Some can’t and those students we advise to pursue other career objectives. In the performing arts the assessment (other than courses like music theory) are more subjectively based. Although I know at least for my D, all the voice faculty and all the dance faculty are there for juries. And if they reach a concensus that a student is not cutting it, at least there are multiple opinions vs. say a single director as with a show audition.
When my D auditioned she avoided one program that had a reputation of cutting kids after feshman year (they used the euphemistic term redicrected). We would nto have supported her applying anywhere with such a system. Luckily it sounds as if that is rare now. Good thing, this is hard enough without that sort of approach.