The rights and wrongs of the school doing nothing aren't really worth getting worked up over. You just have to accept that they do not focus on children who are quiet / get on with it / etc.
My DS hates writing and had fine motor skills gaps from early on. Fair enough, I thought, Y1 is when they will work on that in earnest.
At the end of Y1 I received his exercise books back from the teacher, he had literally written nothing in them. For a YEAR my child had done NOTHING at school.
I shouldn't say nothing, he could recite the contents of an encyclopedia of animals that he found at the back of the classroom, apparently he read that every day for a year... thanks teacher, brilliant job, yes, sure, let the gifted reader do nothing but read all year, what could go wrong? Of course, she'd said nothing, and left him to it, because he was quiet and if she'd alerted me it would mean she'd have to start holding him to account in class, and that meant more work for her.
He could barely hold the pencil when holidays started, almost every letter backward, it took 2+ hours to write 5 literally unintelligible lines. He hated himself for it and I realized that through the teacher's blithe neglect (for an entire fucking YEAR), both his skill and confidence had been destroyed. The teacher shrugs her shoulders because "other children are struggling more". There was no point getting upset about it. The damage was done.
So what did we do? We wrote, daily, through the hols. For hours because that's how long it would take for him to write 20 words. He cried through it all. Called himself names, total loss of confidence and heartbreaking to hear.
It nearly destroyed our relationship tbh, the pain was unbelievable, but he got himself back to starting-Y2-level writing through 8 weeks of blood, sweat and tears.
Of course, the teacher will never be held to account, because to the school it's "oh look this Y2 child is writing at grade level so nothing to worry about". C'est la vie.
I'd get onto a dyslexia reading program and pretend the school doesn't exist. Schools don't teach, they are social inclusion programs for the most deprived, and that is OK. Just don't mistake their stated mission for their actual mission. Parents have to educate children themselves otherwise the children will leave school with just very basic literacy, nothing more, possibly less. The sooner you accept that, the better for the child unfortunately.