At D3, this can look a lot different than it looks at D2.
I suspect what you’re seeing here is that a stronger team jumped in a little later. Sim teams recruit using a sort of “throw **** against the wall and see what sticks” approach.” They’re looking for a weak spot. If they don’t see a path to get into the lead within a few cycles, they move on. But if they do, they will press forward.
Unless OP was paying close attention to exactly when the C team entered, and how long it took to move up, we may not know for sure exactly how it played, but when I’ve seen this happen they usually start right off at low. I think it’s possible that sim started at VL though. That first cycle of attention, they’re spending like 20-27 AP. At D3, 50 AP from a C prestige D1 rival might be enough to get them to low against your stockpile of AP+scholarship after 15-20 or whatever cycles, whereas at D2, sims are always just going to move on after that first cycle, it will always look hopeless. So the first cycle may have had them at VL, but because it’s D3 and not D2, they may have still seen an opening.
In other words, none of their **** sticks at D2, but at D3, some of it does.