Refusing to give a student their own data because of a privacy law that's meant to give the student control over their data is them failing. Full stop. There's no room for excuses for government funded entities to act in the exact opposite way that they are supposed to to avoid their fear of government imposed penalties from a deliberate misinterpretation of what the entire thing is about. That's incompetence by everyone involved. It is people going out of their way to make the world a worse place to act important. Absolutely unacceptable.
It's like if teachers aren't teaching the kids to read or add, the details about all the compliance stuff they need to worry about and how the school "can't" remove disruptive kids from a class or whatever is missing the point; the schools can't sacrifice actually doing their job at the alter of compliance, or we should just shut them down since all they do is waste resources. The compliance people should be figuring out how to shield the actual workers/create plausible deniability if the law is supposedly that stupid.