I think people seriously underesrimate the psychological effects of being told by authority figures over a prolonged period of time that you did something when you know you didn't. It is akin to institutional gaslighting.
Most people bumble along through their lives without experiencing a false accusation, and while they may have some doubts about authority institutions, it's hard to accept that systems and the people working in them could fuck up to such a degree as it appears to have happened in this case.
Even if you do, Heaven forbid, end up in such a situation, you start by thinking it's just a mistake, and if you tell the truth all will be well. After all, what possible reason could there be for you to be apparently victimised by these people. You may be told it's not personal, even when official reports are dependent on dissecting everything about you, your family, your circumstances etc on an extremely personal level, all interpreted through the lens of experts or officials, a number of whom you've never even met.
If you have been brought up to accept personal respinsibility, and to defer to authority figures after a while the relentless pressure can make self doubt a default setting. Even if the situation does resolve "favourably", because if the length of time it takes for legal / official proceedings to process, the mere fact if the accusation, and the knowledge that some people still believe you're guilty / have gotten away with something, can lead to CPTSD. And often there is little in the way of support - you are just supposed to accept you're "unlucky", pull yourself together and get on with it, often with dozens of unaddressed issues floating around in your head while you "act normal", because your trust in authority / institutions / systems has been completely eradicated.
Also, if such a situation goes on for long enough, false confessions are a huge risk. A person may truly start to believe the official narrative, or just want something to change, because that might bring relief. And at that point, what price truth or justice ?