I'm not the slightest bit surprised that people currently labelled as BAME object. The term lumps together people from all sorts of different backgrounds and with different needs.
Even public perception differentiates between between, for example, people from a Chinese or Bangladeshi origin, but lumps them all together as "Asian".
It is useful for public planning to know that some areas have a high percentage of people from a certain ethnic background, because it is possible they might have different needs. For example, some people from certain backgrounds are prone to certain medical conditions, so it might be helpful to allocate funding for specialists. Schools might need extra funding to pay for EAL, etc.
However, the BAME label doesn't really help with the above because it doesn't differentiate between people. All it does is label people as "others" and people tend to shrug their shoulders and say "What do you expect? They're BAME". There's been quite a lot of that over the last few months with the pandemic.