Drop points may be weird and bad choice (1), but they are correct AFAIK.
In KIA #17 we may find ourselves in sand but not in hazards - it's not a bunker.
The picture above shows that there may be no legal point on fairway on the line from the flag. It's probably another bad choice not to repeat the shot but it's formally correct acc. to the rules.
Unfortunately and IIRC, there are even worse drop points.
(1) keep in mind that the program never gives a player a choice of play. Not in points of relief, not in balls, not in unplayables.