When you sell a short put, you pick the strike price that offers the balance of profit potential and risk that best suits you. The deeper OTM the put is, the lower the profit potential and the more the the underlying can drop before you are at risk.
If you are neutral to bullish, you can sell an ATM put which offers a larger premium and greater profit potential but has no downside buffer other than the premium received.
If you are bullish, you can sell an ITM put, receiving more intrinsic value (but less time premium). The profit potential is greater than the above scenarios. The more bullish you are, the higher the strike price that you sell.
In your example, with the underlying is $85 and you sell a $95 put for $22, you have a potential profit of $12, a buffer of $10, and a cost basis of $73 if assigned. $73 might be exactly what an investor is willing to pay for the stock hence that put is the chosen one.
Your concept of
the moment somebody bought that contract, the strike price was above current market value, ITM, and thereby could be exercised is incorrect. Your put has $12 of time premium. Exercising it would throw that away so it's better for the owner to sell it rather than exercise it. Theoretically, any short put seller receiving $12 of time premium would be happy to be assigned right away. Buy the stock via assignment and sell a $95 covered call (which would be equivalent to selling the stock and immediately selling another $95 short put to open). Don't get your hopes up. This rarely happens.