And what training in the FI course is there for a 225(hr) restricted Instructor to pass fail someones flying, none. There is so much variation within the UK of what is acceptable and what isn't. And the more experenced the instructor the lower the standard needs to be. Personally I would have liked a demo of what acceptable and what isn't, I will freely admit that in the early days I was way to harsh. Before starting to teach I think I was in a plane for 2 landings made by low hour PPL's I didn't have a clue what was normal. I only knew what i would be happy with or not (which was higher standard than your average PPL) . Have to watch we don't get sidelined into the 1 hour with an instructor debate again.
You might not like it, but i should imagine that over 50% of the clubs in the UK have this practise. It is legal, it is done.
And in your example Pilot A logs it as PIC pilot B dosn't. Because they are inside te 90day rule so legal to be PIC pilot B It is only there because the CFI requires it, his/her rules he/she gets to choose who does the check.
As for the great CAAFU debate, the gentelmen in question introduce themselves as CAAFU, and it is generally accepted if you say CAAFU it is the gods who do first time IR's. A bit like the rest of the UK using QFI to mean unrestricted instructor much to the ex mil peoples annoyance.
MJ