We had several instructors desire this feature many years ago, and I had a local feature implemented for Moodle 3.0 and earlier. We were using Oracle, but I think the feature can be applied to people who use other database.
Since we moved to 3.1, I found the Attendance code had the structural overhaul changes, and I couldn't simply apply the previous fix for 3.1. It took me a long time to hack the big SQL statement in attendance/classes/summary.php, line 206:
$sql = " SELECT atl.studentid AS userid, COUNT(DISTINCT ats.id) AS numtakensessions,
SUM(stg.grade) AS points, SUM(stm.maxgrade) AS maxpoints
FROM {attendance_sessions} ats
.....................................
I think the SQL statement hack for version 3.1 only works for Oracle. If someone is using Oracle and happens to want this feature, I will be happy to share the fix.
For the documentation about how the "Drop the lowest" works at UMass, here is the link: https://www.umass.edu/it/support/moodle/record-attendance-moodle (go to the bottom of the page).