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Our '22 XC40's are the same way, but I don't see an issue with how the seats are build. The grommets would probably get in the way and cause issues for the folding headrests, and you can't see that area anyway when the headrests are up/in position. This is probably a decent cost savings for Volvo on the thousands and thousands of XC40/C40's that are built.
 

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Given how violently the rear headrests snap down** when you push the Settings > Controls > Headrest Fold button on the touchscreen - perhaps they couldn't find any grommets that would hold up.

** I call this the "Auto-Guillotine" feature. For back-seat passengers you really don't like.
Sounds like I will need to try this now. Never messed with that button before.
 
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