Where there was absolutely no effect, one out of every twenty combinations of all other variables would show significance in combination with the current value of that particular variable in the likelihood of future crime.
Furthermore, the algorithm would simply extend existing biases in arrest and sentencing, because it simply can't account for crimes that are uncaught and unpunished. Groups that are stopped, searched, arrested, and convicted at greater rates would without fail be sentenced to more time. Just another benefit of being white in America.
You end up using the fact that some groups are punished more often to justify punishing them more harshly.
Even worse, I bet that the fact that it thinks that women are at a higher risk for recidivism means that somewhere within the algorithm it's using the fact that women in general are less criminal than men to decide that women who do commit crime are more exceptional (within women), and therefore more deviant. It's disgusting. If you can't legally discriminate against a person on particular grounds, you certainly can't feed those grounds into an algorithm to let it discriminate for you while you shrug and feign innocence.
The algorithm is the innocent one - it's just attempting to reflect the system as it is. It's like an algorithm you would write to predict the winners of horse races, or the sports book. And just like one of those algorithms, if you stuff it with garbage (the kind of garbage that makes it wrong 77% of the time), it will result in garbage. If you use the results for something not external to the system, bad variables will feed back into themselves and make the results progressively worse - what's the effect of a longer sentence on recidivism? How does profitable is the arbitrage on your sports book algorithm if people use the results to bet, and the distribution of bets shift the odds?