Since when is this the worst case scenario for a CS grad? Last I checked, FAANGs value and compensate their engineers more than basically every other industry.
I double majored in economics and comp sci, then got a masters in cs/ml. I didn't plan on going to a FAANG until I realized a few things:
1. Staying in academia was clearly not an option for me. I still have friends who are miserable trying to get through their postdocs and I can't deal with the hobnobbery that some departments exhibit, the political infighting etc. I felt like if I got into the wrong program for a PhD I'd miss out on 5-8 years of my 20s and early 30s.
2. Did the startup thing. Found that most smaller startups are 90% talk and marketing and nothing really groundbreaking happens there. There are a few exceptions to that and if you're lucky enough to find one of those companies, good for you.
3. Other industries that don't focus on software often don't value SWEs the same way. It wasn't until a few years ago that the IT guy who maintained everyones desktops at a small financial firm and the person who wrote the internal software were the same individual. There is nothing wrong with those roles, but if you have the skills most CS grads acquire, you can specialize much more if you find a more software focused role
4. Starting my own thing isn't an option for me personally. I started some companies very early on when in doing my first degree (2009-11) and they failed, great experiences, don't need them again. If this is for you, then good, go for it.
5. FAANGs and other large software corps give you the structure to focus on work, like a laser, and then turn off and still maintain a healthy work/life balance. There are still politics and other bullshit to deal with, but your chances of finding a good team that minimize bullshit are high, in my experience. This doesn't happen at most startups where you have to play many roles. At a FAANG if you are really into a project, you're free to dive into it 24/7. If you're at a different phase in your life, say you just had your first child, you can take a step back and slow down for a bit. Nobody is going to ask "why haven't you pushed 50 diffs this week?" And obviously there is the pay.