Many changes happened by the time the students returned to the academy. The ranks of the students changed and they by their living allocations.
Klaus degraded from seventh to ninth rank. Even though he is a system user, that doesn't mean there aren't geniuses. There are many commoners who have talent but no access to resources.
With the academy giving access to resources many talents shined, but few outshined the ones above them. Many ranks got shuffled. This is not only some commoners outlasting the noble students' rank but also vice versa.
Even Theon lost his first rank to Myra Solian, who ranked second back during the entrance exam. Theon who used to prance around being the first ranker, until Klaus pulled him down a peg or two, now longer has even the first rank title to hold onto.