Yeah, this exam mini-arc went full into deifying the MC. But what else did anyone expect out of this?
That being said, small theory, don't know if anyone else has said it, but when the school admins are talking, one of the statues looks like previous life MC. Given that the first chapter and title depict him as being the strongest, it is likely that legend of him passed down after he disappeared with reincarnation. Then, because of that, the crest he had was also glorified as the 'Mark of Honor' to reflect his abilities. You could say this plot was put into motion by some nefarious force, but overall it would make the most sense as to why shit has changed.
And here I am 8 drinks deep analyzing shotgun trope isekai on MangaDex. I need a new hobby