The reason why 1-hydroxy-2-methyl-5-isopropylbenzene is not the correct systematic name for carvacrol is because the substituents are not listed alphabetically.
IUPAC nomenclature provides the correct and acceptable system of naming organic compounds which are internationally acceptable among scientists.
According to the rules of IUPAC nomenclature, compounds are named in alphabetical order. The names of the locants are ordered in such a way that they have the lowest number. Following IUPAC nomenclature, the correct name of the compound ought to be, 1-hydroxy-5-isopropyl-2-methylbenzene.
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