Well it is called “WP-SCSS“, it says nothing about sass and they even say that in this FAQ
Can I use .sass syntax with this Plugin?
This plugin will only work with .scss format.
So, in my opinion, rating it 3 stars because it doesn’t do what it is not supposed to do seems at least a bit unfair ??
As for why – the sass syntax vs scss syntax – scss is more css-like, better compatibility with css – direct embeding of existing css, sass syntax may be shorter but paradoxically that and the fact it is using whitespace is also the downside of it – there is a reaason why SCSS is now the main syntax for SASS.
Nice comparsion is on https://thesassway.com/editorial/sass-vs-scss-which-syntax-is-better