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#durmstrang makes no sense unless it's an elite private school
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Durmstrang Headcanons: Rules of Admission and Muggleborns
(Those are not canon, but headcanons based on the idea/implication that Durmstrang is an exclusive private school, as well as the name being based on Sturm und Drang.)
Technically, the rules of admission for Durmstrang did not exclude muggleborns.
That is, there was no written down rule of "Student has to have one or two magical parents".
Instead, the rules simply worked in a way that made it almost impossible for anyone without existing connections in the magical world to comply.
Unlike Hogwarts and Beauxbatons, Durmstrang did not send out invitations. Instead, students had to apply many months in advance, which of course required knowing about Durmstrangs existence first.
With the deadline for applications at the end of January, many muggleborns wouldn't even find out they had magic before it had already passed.
Next, Durmstrang taught students from all across Europe, but most classes were held in German. So, the application also required proof that students could speak the language, easily justified as a means to make lessons go more smoothly.
Of course, if you were a witch or wizard with the means to send their child to Durmstrang, you would start those language lessons early and not run into any problems. And while that still left all the German, Austrian, etc muggleborns born between September and January in play, it still excluded most of the muggleborns outside of those countries.
Which is what the general education test was for. Again, officially it existed to make the selection fair and ensure a smooth integration into lessons. But as this test also included some hard questions about the magical world, it was often the excuse used to deny the few muggleborns that made it that far.
And then there was the price point. Durmstrang charged a pricey tuition for attendance, and didn't hand out scholarships. Again, it wouldn't keep out every muggleborn - but it would keep out "the poor", which was probably even more important for the rich elite that send their progeny here.
Lastly, Durmstrang restricted the number of students that could attend each year, which meant the school made a selection out of all applicants.
There was no official rule that excluded muggleborns. But as long as Karkaroff was headmaster, that selection simply never included them.
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