That set up was designed to be only on bathtubs, but then the cheap skates moved into the picture and decided that replacing a diverter spout is cheaper than replacing a valve diverter. The spout "near the floor"is called a "toe tester" .It should be near 12" from floor to centre .It is also intended to test the water temp with your toe before jumping in the shower (hence the term "Toe Tester").
It is very commom now since the builders started cutting corners





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