Grade Override - Calculations don't add up

Community Novice
Not sure if this is a bug, or is working the way it is intended and I do not understand the implementation.
If a student is getting 88.5% and that corresponds to a 3.3, students gets to see that in Canvas.
Student Grade 88.57%
If I then set the grade override to 2.0 for that student, not only does the student's decimal grade go down, but their percentage grade also goes down. The new grade no longer corresponds to the arithmetic weighted sum.
Student Grade 75%
Is this the way it is supposed to work?
After the override, the student would be puzzled as to how the grades add up to 75% when they clearly are higher.