I completely understand that the carrier has obligations to ensure passengers comply with immigration requirements. That said, denying OLCI to anyone that doesn't fit a stringent set of criteria seems to me like defeating the purpose of OLCI efficiencies in the first place. They could allow a conditional check-in and seat selection, with the stipulation that the passenger is still required to go to the counter for a document check.
And as I said, I have flown this sector many times on this carrier and never had an issue before, so this is a regression.
Out of curiosity, does anyone know what a carrier would do if a passenger holding a one-way ticket intends to exit the destination country by land border?