As mentioned above, it is a 40/40/20-H/HP/P ratio. Honestly, the H/HP/P and the associated curve are only applicable during the clerkship year (M2). Would a true P/F system during clerkships be ideal? Yes. Did I feel like the current system was all-consuming? No.
For context, I have no intention of applying to a competitive specialty for residency and spent most of my clerkships focused on just learning and trying my best. I honored half and high-passed the other half of the clerkships. Never did I feel like I had to break my neck to perform at or above the standard. That being said, other people struggle, especially early on in clerkships. Unfortunately, in a subjective evaluation environment, it can be challenging to know how you will perform, especially early on.
Depending on what you are gunning for, you might have to put in the extra work during the clerkship year, but I never felt like the graded clerkships prevented me from engaging in ECs at other points in the curriculum. It's rare to see students have time to engage in ECs during clerkships anyways (that's what M1, M3, and M4 are for).
If you want to talk in more detail, feel free to reach out.
I too went through the clinical years here and can provide a different perspective. As mentioned, you are statistically likely to get a HP and above for most of your clerkships, but there are those that will fall below that and even for many people being above that will still be a grind. And you won't be sure where you fall until you go through it. My friend here, bless his soul, has not made himself anonymous so I'll tell you he's a beast, MSTP and known in our school for making anki decks. Dude knows his stuff. I on the other hand studied humanities in undergrad and don't have an extensive science background, so fell behind in M1 year and never caught up in M2 year. Our grading breakdown was before they implemented the 40/40/20 so a tad bit stricter, but that's no excuse and it still took me a while to grasp the overwhelming amount of facts. I eventually got better toward the later years but by that time it was too late for the clerkship years. Our curriculum was made to give us freedom in M3 year but also to prep us for step 1 (clerkship year helping put step 1 in perspective). Now that step 1 is p/f, they are holding onto that clerkship grading while others have moved past that, to the detriment of the students. Unless you're MSTP or have already done extensive research there is less time to do research since it's condensed in M3 and m4 years (which also is stuffed with step 1 and step 2 prep as well as clinical electives, general electives, sub-I's, EM rotation, and you need to get your ECs done early if you want to submit them for ERAS). I will tell you that a lot of my M4 classmates did not love where they matched this year. Ask the school what our SOAP rate was, they don't even openly tell us but it went down this year, like our match rate. They say the grades are good in distinguishing us when it comes to residency apps, but that means they don't think we're on the same level as the what is it 10-20 other schools that have gone p/f? And unlike pbar, I feel like the intense M1 and M2 years don't give us time to have longitudinal ECs.
I tell you this not to dissuade you from coming here. If you're like me, you were wooed by the admissions culture, the top rate education (I still maintain it's amazing and people do care), and the finances--I'm in-state and their FA was generous, it was a no-brainer. I tell you this so that if you decide not to go to UMich and opted for a P/F clinical school, if they ask in the survey your reasons for not attending, tell them it's because of the antiquated clinical grading. Even if you decide to come here, if they send out any surveys let them know your concerns. UMich is very proactive about recruiting, and this is the only way you can help the future classes. Good luck! Go Blue!
EDIT: Also a note to add. Even though clerkship year depends on a lot of base knowledge to do well and get good grades (since some attendings/residents will judge you on how much you know, and there's always the shelf), a lot of it is also based on vibes. As you've heard from many complaints on how subjective and random it is, a few minor interactions can dictate your evaluation. It creates an environment of really weird dynamics and you'll see a lot of ass kissing. I do think this would go away if it were p/f.