What? This is not true at all. The standards specifies adherence to IEEE 754 arithmetic.
You can read the standard here: https://www.open-std.org/jtc1/sc22/wg14/www/docs/n1570.pdf
Page 507 for adherence to number formats. Page 517 for atan adhering to IEEE 754 specification for the functions defined therein, which guarantees best possible results for individual operations.
Any C implementation where atan gives a result which is inconsistent with IEEE 754 specification does not adhere to the standard.
> also, no OS provided libm produces correctly rounded results for all inputs.
Every IEEE 754 conforming library does adhere to the best possible rounding guarantee. If you have any evidence to the contrary that would be a disaster and should be reported to the vendor of that library ASAP.
Can you provide some function and some input which violates the IEEE 754 guarantee together with the specific library and version? Or are you just making stuff up?