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https://steamcommunity.com/sharedfiles/filedetails/?id=2355791307
The federation dlc that reworked federations and added this mechanic was released "10 april 2020". So no, while this issue has been around for some time it has not been around for years.
That said, very high is indeed completely useless for hegemonies at this point in time and it is a tad surprising that they haven't changed anything about it thus far (like changing one of the rules to require it or grey'ing out the very high option for hegemonies or adding some sort of bonus to it).