My daughter whistle blew on a poor nursery (and she wasnt the only one). They were inspected and passed, because it was mainly things that could be quickly changed once the inspection team walked through the door.
Babies were left crying in cots and seats, the staff didnt interact with them much beyond basic feeding and changing, they'd be left lying on mats.
Parents would say their child was potty training, but staff would put them back in nappies as it was easier. Food given wasn't the food parents were told their kids were given. The manager would take a dislike to certain kids and pick on them, they'd be put in with younger kids away from their friends as punishment. Parents would be told the child's behaviour was bad, when they had just been upset, that child would then be left out of trips. Although the trips rarely happened, despite the glossy brochure. There were lots of toys and activities, but anything messy was hidden and only brought out for photos or open days, the range of things "allowed" was very small. The manager would shout at staff infront of the kids and the staff turnover was huge. They were often not in ratio.
The nursery doesn't have a great reputation locally, mainly because they can only attract young poorly qualified staff. But it's cheap and the only one near a certain school providing wrap around care.
I'd hazard a guess that there are lots of nurseries like this, operating just under the radar. Not good but "good enough" .