OP, I do understand why you are upset (and don't fully understand the hard time you are getting on here, apart from the fact that the idea of preschoolers doing any kind of academic learning seems to make some people furious, despite the fact that almost all preschoolers of my acquaintance seem to enjoy it and to already have developed various skills in literacy and/or numeracy).
My dd's end of nursery report is a load of rubbish, in terms of both the levels (she was "developing" in 40-60 reading, for example, although she can read, and a target set was to start to try to learn to read CVC words, with the example C-A-T given).
I was upset, as it will be sent to her school,and I didn't want them to start her off on the wrong levels of reading book etc - this may make me some insanely pushy monster, but there you go. However, I showed it to my childminder who has worked in early years education for ages in various capacities, and she said that while she agreed it was wildly inaccurate, it will have been written like this because nursery simply have not given dd the opportunity to demonstrate what she can do in the different aspects, and that the school will discount it because they will realise it was written by carers, not qualified teachers. (These were her words, not mine).
To paraphrase, she essentially told me to let it go. So I will. I will complete the bit at the bottom for parents comments though, and say it is inaccurate in my view, and why.