Malicious payloads decoded more than 3 times are passing without any violation raised

for example:
":path\":\"/item/57328/1/59721?test=%2e%252e%2e%252e%2f%252f%2e%252e%2e%252e%2f%252f%2e%252e%2e%252e%2f%252f%2e%252e%2e%252e%2f%252f%2e%252e%2e%252e%2f%252f%2e%252e%2e%252e%2f%252f%2e%252e%2e%252e%2f%252f%2e%252e%2e%252e%2f%252f%2e%252e%2e%252e%2f%252f%2e%252e%2e%252e%2f%252f%2e%252e%2e%252e%2f%252f%2e%252e%2e%252e%2f%252fetc%2fhosts\"

which decodes to:

/item/57328/1/59721?test=....//....//....//....//....//....//....//....//....//....//....//....//etc/hostsa