It's likely chosen for cost. There's a couple of brand new fairly cheap laptops with exactly the same screens on paper and a few other similar sized laptops that are in the ballpark.
Skimming Google, there are pretty much are no laptops 12" and higher resolution than 1080x1200 that's current nor made by Apple.
On sibling thread I already mention the Surface Pro (convertible) at 12'' and it's 2880 x 1920. The next 2025 convertible that I found, Latitude 7350, is also 2880 x 1920 (at 13'', though). In fact, most of the 12'' convertibles with 1080p are either sub$800 (which I doubt this thing is) or come from Lenovo (whom you really do NOT want to compare with regarding screen quality -- https://www.notebookcheck.net/Enough-with-the-cheap-screens-... ).
And let's not get started on 12'' Android tablets...
That model of Surface is nearing almost 8 years old by now. Not current by my standards. I'm thinking about the chance of existing tooling still being around to make a screen and slap into a laptop rather than if it existed at one point.
But yes, considering that Framework's Chromebook is/was expensive (over $1k) for the class doesn't give a lot of faith that the 12in model would be any different. Though that was equipped with a 2k screen and had a 12th gen i5, so I genuinely wonder what kind of meetings happened to ship out a premium Chromebook (a segment that does not exist)
The last Surface model is less than one month old. The chassis was updated less than 2 years ago ( and to reduce the screen margins, no less ), and the resolution was improved again.
Skimming Google, there are pretty much are no laptops 12" and higher resolution than 1080x1200 that's current nor made by Apple.