Why are AI managers allowed to break squad selection rules?

[..Valhalla..]

In my HG database, something has come to my attention. The idea was to prevent foreign players being registered in top leagues (I settled on 14 countries fwiw), and while the rules clearly work long-term, at game start the AI managers are registering and playing players they are clearly not allowed to register.

I started a new game and took control of Liverpool. At the squad registration screen I cannot in any way submit my squad if it has so much as a single foreign player, which is exactly what I expected. however, I holidayed to the season start and was annoyed to see all other Premier League teams had registered foreign players happily. They don't sign any foreigners as the game goes on (a 10-year holiday overnight revealed entirely HG squads in the leagues I have edited), but I still don't understand how the registration rule only applies to the human manager at game start 

In the images you'll see:

1. The transfer policy,
2. The squad restrictions during the selection process,
3. The denial when (human manager) attempting to register foreigners,
4. And then (AI controlled) Arsenal V Southampton Premier League match where they clearly break the rules.

[Karnack]

If it's impossible to register 15 players that follow those rules, maybe they automatically include players or the game would simply crash?

[Fredrik]

That's when you'll have grey players instead.