That used to be allowed. It's no longer allowed now but not for any reason with respect to the GFCI. The code now requires bathroom receptacles to be separated out on their own 20A circuit with very limited exceptions for other things being on that circuit.

Building codes constantly change and back in 1994 the code regarding bathroom was less restrictive and GFCIs were far more expensive. I had a house built around the same time whose master bathroom was served by a GFCI in the garage.

Obviously you can change things if you want, otherwise you're "grandfathered."

"this isn't right in today's standards"

You only have to meet the code in effect when the circuit was installed (or the house built).
Every old installation is grandfathered as long as it meets the code when it was installed.

some areas have exceptions for bathroom receptacles and kitchen counter receptacles.

Since a GFCI can be added even on a 2-wire circuit (they do not actually require ground to operate correctly) many AHJs require those upgrades.

There are a varying times when they step in to enforce, with remodel (often any time an electrical permit is puled for anything) or sale being common events that trigger the requited upgrade.