I am absolutely certain many of those kids are great at writing code; what I have found in the last ~3y of hiring candidates out of undergrad and/or masters programs is that they DO NOT interview well.
They can answer esoteric technical questions about software dev (I *assume* this is because they study for coding interview questions) but they cannot possibly answer more general questions about themselves, how they would operate in a real-world business setting, and/or how they might build something from soup to nuts.
I'm not asking them to give me real-world experience; but, I expect a college graduate to be able to think about questions asked critically and provide a coherent and thoughtful reply to that question. Even if it's technically 'wrong', the conversational nature is INCREDIBLY IMPORTANT for any work I have done in my 25+ year career.
Anyone can have AI solve most esoteric technical coding problems now; interfacing ability w/others on the dev teams and the rest of the business is what is important in getting shit done.
Colleges need to start investing HEAVILY in leveling up their students in how to interview well.