Grade inflation is pretty common in elite universities, too. I’ve seen curves in classes where 80% of students got an A or a B (and about 35% got an A). Harvard openly admits the most common grade given out is an A.
The problem (IMO) is less about the grade inflation and more about student preparation. Community colleges take all kinds of students, from the high achiever who doesn’t know about financial aid (or still can’t afford a top school with it) to students who struggled in high school to retirees taking a class or two to learn a skill or pursue a hobby. The class levels often have to be pitched right in the middle or lower, and even smart high-achieving students who attended community colleges for the first two years may struggle in the the competitive elite university classes and atmosphere. Of course, they may thrive - it’s kind of difficult to tell.