I'm aware that the world isn't black and white, someone who submits a truthful resume to a job posting where they don't technically meet the qualifications has only made a little white lie that's almost universally forgiven, you're correct that they'll likely look ambitious and confident if they tell the interviewer "if you want to be super technical about it I don't meet this one little qualification but I think you should ignore that because factors X and Y make me a great candidate".

It's this culture of pervasive little white lies which is harmful. Be brutally correct, not just sufficiently honest to brush off these occasional inconsistencies. When someone does make a little white lie, call them on the lie and take the mandated action. Otherwise people who are most flexible with what's acceptable will advance more than those who require correctness.