My guess is that it is because Fritz don't support this. He let you think he support it with starting the engine and even send the UCI_* parameters in rated training games but it will never ask the engine for a move. It don't even use the Frtz 18 engine but rather some internal engine in the GUI. It isn't a bad thing for a normal Fritz user because they have more control of the rating and is probably more accurate than if they let the user use any UCI engine to play rated games.
With not using the standard UCI_* option they fool Fritz to think it is something else and thereby showing this option in the option setting for the user to select rating. This of course ruin the use of Dragon in all GUI that take use of this LimitStrengt setting like Hiarcs, but who cares as long as Fritz users are pleased.
I sometime ago suggested that they use two options in for each choice, e.g. let the UCI_* be as the standard and add a new option for be used in Fritz, but noone was listening. See f.ex. how shashchess are doing it.