I do think the procedures that you have described are undemocratic and wrong. What has been good about the DEI proposals is that they have brought into the research and teaching community a number of people whose voices had not previously been heard. That is a very good thing. It is not a good thing when you then start excluding people on the grounds that they don't meet those previously marginalized standards.
I said earlier that the problem with a policy to compensate people who had previously been marginalized is that implementing that policy may then marginalize another group. What you're pointing to in your question is that this has happened here. That is wrong. What you've done is create a new set of marginalized people. That's the same kind of wrong you were originally trying to correct. The policy is not only wrong but also fundamentally morally inconsistent.