This is a rather unfortunate answer from Instructure.
It's the end of Summer '23 and it's hard to believe that Instructure seems to have no sense of significant figures.
The default two-decimal places gives the illusion of precision that is simply not there.
Anything that can be done to prioritize giving users the option of selecting the number of decimal places to display would be greatly appreciated...
P.S. I find posting in these forums and "voting" (which I've never done) really awkward and time-consuming. Perhaps Instructure can consider focus groups or some other way of getting feedback especially from folks in higher ed about much, much needed improvements.