It still matters because you can earn feats for 5 and 15 distinctions and you have to keep up your grades.looking at your picture and game file - i'm pretty sure you failed exam, look at last part:
"The expected mark." - failure, you remain on same level
"You've improved your mark!" - success, you increase level
"Distinction written beside it in green ink." - success, and you reach max level
at same time, you already at max level (green A*), so exam kinda don't matter anymore
I used an old save. Everything already at A*.
But I'm still a bit confused how this new system is supposed to work. I also had very low percentages at the last exam but I passed, got an A* and my 5th distinction. *bling!*