I've definitely experienced martial arts training for fairly unrealistic scenarios, and with compliant partners, but I've been surprised even in fairly decent TMA classes how little some instructors are aware of basic boxing technique, for example.
For a short time I used to attend a TMA class [Chinese, but the style isn't particularly relevant] which was, in many ways, a really good class. Drills were done with a fair bit of intensity, there was sparring, advice on stretching, technique etc was all pretty good. However, whenever we did work on 'what to do against a hook' or 'what to do against a straight right', that sort of thing, the techniques they were working against were never really that much like a boxer would do. I'd only done a few months of boxing at the time, but the hooks I threw were nothing like the hooks they drilled against. I'd stand about 2ft closer, for a start. And then they'd move to 'the correct distance'. And I'd step in.
"No, throw the hook from the right range"
"This is the right range"
there were similar issues with drills against straight punches, where the punches they practiced against were much slower, and brought back much slower than would be the norm.
It seemed an odd problem, as, when drilling against techniques from the same art, they were actually pretty realistic, and trained without compliant partners, with a decent level of speed and contact, and so on. In many ways it was a good class, but with an odd blind spot about what people trained in 'western'/'sporting' styles actually do.