I think it is because we are implementing Goodharts law on a society scale.

"When a measure becomes a target, it ceases to be a good measure"

Many people see others taking short cuts and getting rewarded so that is seen as a legitimate path now. This works short term but errodes the foundations of that society over time.

So yeah this tracks for how things are going.

Having a degree itself used to be a pretty good measure of something, and now it's pretty meaningless. (Unless you don't have one of course)