Okay I'm not saying you're wrong on it being stupid BUT.
If you use the desk right at the start of the game and read some of the lore there, it outright brings up the "theory" that GF's can cause memory loss but stresses that it hasn't been proven. Later on you can talk to a Garden staff member who outright tells you to "ignore any rumors related to GFs because you'll be using them a lot".
So the odds are that they KNEW the risks and simply said nothing, considering the benefits that GFs give to outweigh the drawbacks. It's also one of the primary reasons Irvine doesn't use them until the events of the game.
Now the obvious problem here is that all that is completely hidden within optional dialogue and lore that you can completely miss, with the main story not highlighting it at all outside of the Orphanage plot twist.
My point was never weather it was a good twist or a bad one. Only that it ISN'T, as the video suggested, a plot hole.