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As if a self-taught person can't learn what not to do from more advanced peers and get the same benefit?

More advanced peers aren't going to spend 4 years going over everything to make sure nothing was missed.

And yet most CS graduates can't even (allegedly) solve fizzbuzz ...

No, they'll only go over the stuff that's relevant to the task at hand. Seems more efficient to me.

It's YOUR job to know what's relevant to the task at hand. It's not your peers' job to make sure you do.