For any algo, I'm sure you'll find features where it underperforms, and since, well, photos are 90% race-determined, of course there will be racial differences.
Bureaucracy doing its best to not deliver what the law says it should is, meanwhile, blatant racism. Just sounds less exciting than a Skynet-style racist operation of white men forcing Asian women to join a different queue at the airport.
Not making your software function properly for all the legitimate input it has to deal with is a bias. Not working to eliminate that bias because it affects a group you don't happen to be part of could even be called racist.
You are arguing for the developer's convenience. Good software is about providing functionality to users, not developer's convenience.
Perfection is the enemy of good and many bugs get relabelled features (and no I am not doing that in this case, just pointing out that software development always involves trade offs).
And stop calling it racist. Racist used to be something pretty bad, now it's being applied to everything.
Rant start >
I think this just derails discussion about how system is really broken. My friend applied for UK residency around Christmas. She matches all criteria, her husband studied and now works in UK, she is EU resident. Border service holds her passport for 11 months now!!! Only info we can get is automated paid call, for 15 euro they tell us it is in progress...
Meanwhile she got pregnant and is about to deliver. All faster before border service can even answer single question... She is about to deliver, 2000 km from her husband, and can not even leave this country, because UK is holding her passport. And yes, she happens to be black as well...
...rant end