The False Positive Paradox

I heard this term for the first time today.

I didn't understand a thing.
I did the same as all of us would have done; Searched it on internet. A bookish, long definition that went over my head. So I asked for an explanation with an example. This is what I got -

The Airport Security Scanner

Imagine you are at a massive airport with 10,000 passengers passing through security today.
• The reality: Almost everyone is a normal traveler. Only 1 person is actually trying to sneak a banned item onto a plane.
• The machine: The airport buys a brand-new, super-accurate X-ray scanner. It is 99% accurate, meaning it only makes a mistake 1% of the time.
Now, let's see what happens when all 10,000 people walk through that scanner:

1. The 1 actual rule-breaker walks through. The machine catches them. (1 real alarm)
2. The 9,999 innocent passengers walk through. Because the machine makes a mistake 1% of the time, it accidentally flags 1% of these innocent people (maybe because of a belt buckle or a laptop charger). 1% of 9,999 is 100 innocent people. (100 false alarms) The Paradox: By the end of the day, the security guard has heard the alarm go off 101 times. Only 1 of those alarms was a real threat, while 100 were total mistakes. Even though the machine is "99% accurate," if the alarm beeps at you, there is a 99% chance you did nothing wrong.

Then I understood the thing.

Not everything is 100% accurate. There is always an x% error.
This is my example -

Suppose a machine is 99% accurate. When the true value is 0 (nothing is there), there is still a 1% chance the machine makes a mistake and outputs 1 (a false alarm).
Now, imagine 1s are super rare—say, out of 1,000 cases, 999 are 0s, and only 1 is a 1. Because there are so many 0s, that tiny 1% mistake rate creates about 10 false alarms (outputs of 1 that should have been 0). So, whenever the machine outputs 1, it is actually wrong 10 out of 11 times. This is called the false positive paradox.

This can happen in the logic-building parts of our machine architecture.

Do y'all have any other fields or domains where this paradox can be taken into consideration?