That or the game (engine) is old and open source and (like Nethack) people have been adding features to it for decades. The first time someone used Create Water on a hellhound it didn't work, but someone with access to the code thought it was a neat idea and added it.

I do think it's kind of funny that the IoL quest is set up to look like a broken taxation mechanic, and Arc solves it by exploiting another broken mechanic. n.n