I can assure you I have not been "doing this wrong" for 29 years. It has nothing to do with the understanding of the material - the questions are specifically designed to make the exam more difficult that just knowing the material. Again - do it as a practicum, like Citrix and Cisco do, and you REALLY have an idea of the candidate knows the material or not. Multiple choice tests where it's 100% wrong if it says "pick all" and you get 2 out of the 3 do nothing but generate revenue.
Half my down time, I'm helping the guy 2 cubes down try to solve customer problems. He has passed the Windows Server and the Exchange exam series. He has pretty close to 0 troubleshooting ability, unless the exact error messages results in a Google hit for the one and only solution. Usually things are much more complex than that. I'll suggest a course of action and he is usually responds with "I think I read about that somewhere" The way he works is the Microsoft Exam way - every little thing in isolation, no big picture look at the whole system. A fault in one system can easily just be a symptom of the real problem in a (seemingly) unrelated system - one needs to look at the whole system if the most basic troubleshooting fails to resolve the problem.
My 29 years is post degree. While in college I worked in the computer shop, and also as my summer job for a couple of years. And 'playing' with computers and electronics - that goes even firther back in my childhood. Another thing is all these new guys have passed the latest version exam, so they see what might be problems in the current version of the product, but not every customer has the latest version yet - and when there are such massive changes such as between Exchange 2003, 2007, 2010, and 2013 (2016 didn't change much), they are easily lost without the practical experience. Again, the "Microsoft Way" on the exams assumes a nice clean latest versions of everything environment - which is almost NEVER the case, even the completely new system I just finished setting up, they run a critical line of business app where the app vendor will not support running the database on anything newer that SQL Server 2008. That sort of thing always annoys me, especially when you look in the database and there are no stored procedures which could be using code that is deprecated in newer versions. Nope, just your basic collection of data tables. And if you try it, it will work just fine on SQL 2014, or maybe even 2016. However, the software vendor will then blame any and all problems on the fact that you are using too new a version. Instead of unsupported end of life stuff... uggh.