There is no problem with that, though, if it does not result in unwanted clipping.
I think from the perspective of auto-ISO in M mode, though, so a high ISO in my paradigm is only an issue when clipping results, and the real solution would be to manually lower the shutter speed for the compromise needed in that light, with that level of action. If one is using Av- or Tv-priority with fixed ISO, then high ISO settings are another issue, and they may drive too short an exposure, or too small an aperture than what is needed.
I think there is a problem, not with the highlights, but with the shadows. The dark areas are so bright that he has lost the contrast.
I don't use auto-ISO and under conditions such as this, I would have shot in manual mode. I don't think cameras make the best decisions when shooting in situations where the light range is extreme.
If one uses AV or TV priority settings in conditions like these, using spot metering would help the camera make better decisions to expose the subject properly. Regardless of the method chosen for your exposure, one needs to check the settings frequently at this time of day since light conditions change very rapidly early in the morning and late in the afternoon.

