When we are put into a catch-22 situation, we should not expect sympathy from the ones who created the catch-22 situation.

The full letter (https://ucstudentsuccess.org/) gestures towards "growing pressure to dilute quantitative rigor". The strong implication seems to be that some administrators have told some faculty that the failure rates you'd get from holding the line are unacceptable. Presumably they don't want to frame this issue as a faculty vs. administration thing, which makes sense to me.