I think they are tying to use the rare spots for transfers for unique situations and people. They don’t need your high stats to pad their rankings. They know you are only paying two years of costs for the same degree. The students shut out of this college for economic reasons originally, community college students, veterans , college closings, change in academic focus that the school is also interested in supplementing.
So someone who thinks moving from state flagship x to prestigious private u “y” isn’t particularly unique or interesting. Also the 4.0 at some other school may not translate to the same at school y. They want the transfers to really add something to the class.
So I believe the advice here is to help a student craft a more interesting narrative. Obviously no one intentionally wants to go to a school they think offers them less. They get that already.