Betterment is one of the most common reasons deposit deductions are reduced or rejected during adjudication. The principle is essentially thatyour landlord is entitled to be put back in the position they were in at the start of the tenancy minus fair wear and tear, but they're not entitled to end up better off at your expense.
The most common form of betterment is when a landlord deducts the full cost of a brand new replacement for an item that was already old or worn when you moved in. If a carpet was seven years old at the start of your tenancy and has a typical lifespan of ten years, it had only three years of useful life remaining. If you damage the carpet and the landlord deducts the cost of a brand new replacement, they're getting a new carpet at your expense when they only lost three years of value. That is betterment, and an adjudicator won't allow it.
Betterment also applies to cleaning. If your landlord claims the property needs a professional deep clean at move-out, but the property was not professionally cleaned before you moved in, the landlord is seeking a higher standard than the one they provided. The adjudicator will consider what cleaning standard was documented at the start and only award costs that restore the property to that standard, not an improved one.
This is why your move-in documentation is so important. If you can prove the age and condition of items at the start of the tenancy, you can challenge betterment in any deduction claim. Without that evidence, it becomes much harder to argue that the landlord is seeking more than they are entitled to.