You're never going to pinpoint perfect targets every time are you? If they see a player that catches their eye he'll get noted and followed for a while, then perhaps presented as an option to sign somewhere down the line, maybe even for a different manager to the incumbent when the process started. I don't see any surprise that a provisional list is heavily filtered down when discussions around signings start to become more serious.
No different to someone looking for a new house or a car, you might shortlist 20-30 flicking through Rightmove or Autotrader, then you knock it down to 10 or so that you want to go and have a look at, maybe 5 of those tempt you into a bit of loose negotiation and eventually you settle on one to make an offer for.
That's not how it was positioned though. It was as if they had done all of that work and that was the final list. Of which 2/3 were deemed unsuitable by a manager who according to previous reports gives them the parameters of the type of players he wants.
To quote your analogy. We wanted a 3 bedroom semi and 2/3 of the list were either 2 bedroom terraces or studio flats.