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I'm playing my first game as the CP against the AI and France surrendered with the following immediate consequences to the remaining British forces in France:
The UK forces (in my turn as the CP) were all revealed with the fog of war lifted entirely across all of France, and they were all at supply level 0 which allowed my German forces to decimate them with attack odds of 1:8 to even 1:9!

Is this WAD and if so, why?

The next few turns had the few remaining UK forces going up in supply levels but never more than 3 or 4...

C

WAD as that is how the engine works, but yes, that is not really a good solution for WWI. There would be nothing to stop the British supply lines that is still behind them, even the instant removal of the French units with total control of the French territories are a bit (much) of a stretch. Would be better, if territorial change would only happen if you walk over it, and the units would go away in a few turns, first the front lines and the nearest to the enemy, than the rest, giving time for the allied nations (UK in this case) to evacuate or take a defensive line for whatever they can hold.