You'd be surprised. It does happen.
The trouble is, when things go badly wrong in the system, trying to get it addressed in a calm and rational manner whilst hamstrung by lengthy bureaucratic process is a Herculean task.
I've experienced it to a degree, though in very different circumstances, and I've seen it happen to others.
By the time people are desperate enough to try and get attention for their situations they do start to sound completely unhinged. Until you've been there, you do believe "this or that couldn't possibly happen", then when it does, despite having proof in black and white, it gets thrown back as your mental problem. Institutional gas-lighting really does happen.
Due to the lengthy processes, and multi-agency opinions, and differences of such, every day that passes represents further breakdown of relationships between families, which creates a never ending feedback loop of obfuscation and more hurdles to be overcome.
One family can have a huge number if people "involved", some will meet the family, some will just have case notes and opinions to rely on, very rarely is it a smooth, logical process.
I wish the OP well - the whole truth if their situation sounds complex. Being forcibly separated from one's child is traumatic in any circumstance, and is always painted as an absolute last resort. It's far more complex in custody cases with parents pitted against each other, and sometimes frankly enabled by the state.