I would agree - if there is a double standard, it needs to be fixed.
I may have misunderstood your post. But, it appears that you have PADI telling you one thing - officially, or so it sounds. And, yet you choose to believe something else.
So, since you think this needs to be fixed, I presume that you, as a PADI OWSI, and self-described PADI Pro on SB, followed up with PADI QA by telephone to report this operation, right?
The Regional Manager that you refer to was probably Jon Coon. He did retire several years ago. Jon was a diver of considerable experience, and was quite safety-oriented. BUT, PADI Regional Managers DO NOT independently give 'waivers'. For any possible variation with regard to standards, PADI QA and Training have to do that.