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It generally choses the closest server to you, and the populated ones.
Due to low player count of TF2, of course you will be mixed with low and high tier players.
Aside from that, matchmaking is really bad, they should fix it somehow.
So basically, since there is no player, and matchmaking looking for a server, it puts every kind of player (new or experienced) to one server.
they used the glicko system, just wondering how it works
As both teams are always unbalanced.
As for your answer: https://en.wikipedia.org/wiki/Glicko_rating_system
Rating (R): Represents a player's skill level.
Rating Deviation (RD): Measures the confidence in a player's rating. A low RD indicates high confidence in the rating, while a high RD suggests less confidence.
Rating Volatility (σ): Reflects the degree to which a player's performance varies over time. High volatility suggests inconsistent performance, while low volatility indicates consistent performance.
Key Features
Dynamic Adjustments: The system updates ratings more accurately by adjusting the RD based on the number and outcomes of matches played. More frequent and recent matches lead to lower RD, while fewer or older matches lead to higher RD.
Initial Calibration: New players start with a high RD, indicating low confidence in their initial rating. As they play more matches, the RD decreases, stabilizing their rating.
Match Outcomes: Ratings are updated based on the expected outcome versus the actual outcome. Winning against a higher-rated player increases the rating more significantly than winning against a lower-rated player.
Time Decay: The system can incorporate a time decay factor where ratings and RD adjust over time, reflecting a player's current skill level more accurately.
The Glicko system is widely used in various competitive environments to ensure fair and balanced matchmaking by dynamically adjusting player ratings based on their performance and match history.