That’s normal for anyplace that hasn’t moved away from lead service lines, which is much of the developed world, although everyone is doing so at varying paces. Most of flint has been converted, and testing guidelines require them to include houses that haven’t if possible.

As noted in the report you cited, which specifies that it’s from lead service lines, household fixtures or ground elements. Specifically not the corroded piping, since that was all replaced. Samples are taken at the tap in people’s houses after letting the water stagnate for six hours.
Criticizing Flint for having water in line with global norms isn’t quite fair.

I’m not sure why you say it’s the same people, when the lawsuits mandated independent testing, and it’s a new set of people in charge of the agencies and the entire state government since then.

The levels we’re talking about detect lead from the solder used to join copper pipes in the 90s. The existence of an action threshold as distinct from a target level isn’t some “oh shit” moment.
There’s no safe level for gasoline in your body, but it isn’t a health crisis if you get a drop on your hand.

https://www.mlive.com/news/flint/2019/02/independent-tests-in-flint-reveal-water-is-well-below-action-levels-match-city-results.html

https://www.michigan.gov/-/media/Project/Websites/flintwater/documents/2019/Report_Independent_Lead_Testing_Period_2_dated_012119.pdf?rev=e72560f19ea84ad38225bc5c22adf0a3