If this is true, then you almost have to concede the model is broken. There will be a glut of PhDs compared to faculty positions. One of the reasons so many PhDs are disgruntled is because of the false expectation that every PhD is on track for a professorship.
I picked a random public school to see if their program states the intent is to produce faculty[1]. It seems like research is the other half of the goal along with teaching. Lots of research is done outside of faculty positions.
"The doctoral degree, i.e. the Ph.D., is primarily intended for students desiring a career in research and/or collegiate teaching."
[1]https://cse.engin.umich.edu/academics/graduate/phd-in-cse/