Yes, the district's policy basically prevents a coach from receiving compensation from an athlete that he is coaching on the team. Those who are responsible for informing coaches of these policies are the Principal, Athletic Director, and the district. The district should include these relevant policies in a coach's employment forms. They do not. the Principal and Athletic Director should know the policies. They did not. So, by their ignorance of the policies, they could not properly inform their hired coaches of the policies.
Obviously, if the coach had been informed of the policies, he would never have signed on as a volunteer coach. Anyone who thinks the responsibility rests with Avery, rather than the district, Principal, and AD, needs to have his head examined. But, that is the kind of flawed logic some people operate with.
I get that it undermines the new coach. News flash, the sport is not to make the coach feel secure within himself and stroke his ego. School athletics are supposed to be about the development of the kids. I know it is hard for the Director of Schools, Superintendent, Principal, Athletic Director, and some coaches to grasp that, but it is supposed to be about the kids, not the coach. If I was a coach, and I realized that I had zero paid coaching experience, and admitted to others that there were members of the team he was incapable of helping progress, I would be flexible enough to incorporate the better, more experienced coach into the program, within policies.
Finally, you should know that very little investment has been put into these programs, historically. You write as though the schools have been provided adequate coaching, when everyone with a brain realizes that most schools do not place adequate coaching for track and cross country. At one school, a mom, most likely inexperienced, is the cross country coach. Come on, get a clue.