It does happen a lot - and they end up in the release radar playlists too. It’s not really Spotify’s fault though - artists and their representatives should be aware that there are other acts associated with a name…especially when it’s people who’s had significant chart success like Low, Belly, Kingmaker, Messiah etc.
But the copyright on a name only lasts a short time. I remember there was some programme on the BBC about it years ago where the programme maker realised there was nothing legally stopping him forming a band called The Move (as enough time had passed and nobody else was using the name) and play a gig under the name. He even had the cheek to play “Flowers in the Rain” as I guess it just counted as a cover version.