Architect,
One thing that companies don't like doing is "wasting money". Once you have invested some much time and effort into training someone it becomes harder and harder to get rid of them the further down the training pipeline you go. You get a mentality of not being able to fail them because upper management would then start asking why the person had gotten so far without being failed earlier. This situation just snow balls and people will eventually just get "let through".
I have no idea if this is happening at CX but it wouldn't surprise me. Once management start calling the shots on training is when you airline starts going downhill fast.