Software Engineer and former SRE-SE here; also a two year drop out.
> Universities don't grant degrees until someone has proved they have whatever competency the degree indicates
That is not a rule. I have interviewed countless folks with CS and CE degrees that can't get past basic scalability questions in abstract systems design. I've started plenty of hour long interviews only to learn five minutes in that the candidate has a four year degree and cannot correctly identify a use case for binary search nor implement it in plain code.
> Universities have a reputation to lose if they grant a degree to someone who goes on to mess up badly
They absolutely do not lose reputation. We don't publish on a website where the degrees came from that allowed Cambridge Analytica to exploit the American people. Everyone will easily write off the offending programmers lineage as a fluke and move on with their lives. Nobody really cares where you came from in this world, just what you're up to now.
> Mr. Marotto making a major error when he's no longer employed by Facebook doesn't reflect poorly on Facebook.
I agree that this would be a pretty trash take and a poor precedent to establish long term.
> "Former Facebook engineer" means Facebook paid him... No more and no less.
Simultaneously, this is not true. Working for Facebook carries some prestige, as we can see from all the folks who proudly sport "x-Facebook", "x-Google", "x-Netflix" show us. Obviously some people make use of this market and obviously someone is foolish enough to believe the sheen. The value in that perception rests with the viewer; if they hired him because of his work at Facebook then it was significant, if they would've hired him regardless then it matters very little.