This is a very cynical take, and completely wrong.
My daughter is at level Z, and some of her peers are level P or Q. It's fine, and encouraged. She just gets different work while they are still working on up-leveling.
Only lazy or underpaid/under-resourced teachers give every kid the same work.
This is my experience as well. OP is parroting a common talking point from the groups that want to privatize education.