Is attendance an appropriate parameter for judging a student's capacities and quality?

So, I am a university student and my university has never had many regulations regarding attendance. However, this semester, they are telling us that if we have poor attendance, we can't take the final exams.

This is my third semester here and I topped the past two semesters. Yesterday, one of my professors told me that I scored above 90% on the pre-final paper he checked but he feels that I can't take the final exam due to poor attendance. I was planning to do PhD after this. As per the standards of my country, having a semester drop would have me rejected in most interviews and it will remain there with me all my life as a permanent scar.

I have attended 50% of the classes. However, they always discouraged me and thus I preferred to study on my own. I still was a first class first in the semester 80% of my classmates, that attended the classes regularly failed.

I don't know how to accept it. What is your take on this situation?

Is attendance an appropriate parameter for judging a student's capacities and quality?
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