This applies to all signals. "It will be gamed. No exceptions."
If you care about being equitable, there is no way to fix the elite university system. There are by definition only a few elite universities and they can only admit a small fraction of the population. Even if it were a lottery it'd still exclude the vast majority of people.
I feel like a lot of the over-the-top "wokeness" coming out of places like Yale is a case of "they doth protest too much." The vanguard institutions of an inherently discriminatory elitist system of conferred nobility are trying to deflect from this by blathering about diversity. The nobles are lecturing us about how woke they are in the hope of distracting us from the fact that we are not and probably never can be nobility.
The only real solution is to make that system obsolete. A person should be hired on the basis of their ability to do the job well. Nothing else. No degrees. No name dropping. No elitism based on what region of the country you're from or where you went to school. Just ability.
Colleges would only be able to justify their existence (and cost) by arguing that they are good places to learn and hone one's abilities. This would not only be more equitable but might allow people to get into the workforce without a writ of indenture in the form of a giant student loan to repay.