Companies didn't like hiring entry level engineers even before AI came along because it took them such a long time to become productive and they had a habit of job hopping as soon as they did.

LLMs didn't really change anything about that but people like to give it credit for stuff.

In the long run it meant seniors commanded high salaries. It's the tragedy of the commons i guess except where the apocalypse is you need to build a free sushi restaurant and on site laundry for your spoiled developers.